In response to the growing activity in influencer marketing, the increasing number of new influencers entering the market, and the businesses collaborating with them, the Hungarian Competition Authority (GVH) has released a consolidated information guide. This guide explains the advertising rules and the recent decisions made by the competition authority through specific examples. The document is aimed at providing guidance for intermediaries, advertising agencies, and advertising businesses.
**Clarification of the Influencer Concept**
The guide clarifies the concept of an influencer (or opinion leader), which now includes individuals who promote third-party products on their own social media platforms in exchange for compensation. Influencers also encompass animals, mascots, and avatars, as long as they are used for promotional purposes.
**Definition of Editorial Content**
The guide has been updated to include the concept of "Editorial Content," which covers the profile pages managed by influencers and the posts they publish (such as text, images, links, opinions, etc.), as well as a series of these posts. Special attention must be paid to ensuring that it is clear to consumers whether the posts distinguish between content with different purposes (independent vs. paid). Consumers primarily expect entertainment and independent content from influencers.
**Rules Regarding Indicating Compensation**
The guide emphasizes that any business relationship or collaboration with an advertiser must always be clearly and understandably stated in advertisements, so that consumers are aware that the influencer has received compensation. In this regard, such content must clearly, visibly, and understandably indicate the business relationship.
For advertising-related content, labels like "Advertisement," "Ad," "Sponsored Content," or "... supported by" are still acceptable. For the influencer, it is sufficient if the content label (e.g., on Instagram, "paid partnership with [partner]") indicates the fact of compensation.
For "stories," proper textual labeling and attention-grabbing notices are essential, especially when the "story" is divided into multiple parts.
**Publishing Authentic and Credible Content**
It is important that the content published by the influencer conveys authentic and accurate information about the promoted product or service, in line with the regulations prohibiting unfair competition. The influencer must have actual knowledge of and experience with the product or service being promoted, and the content should reflect their personal experiences. Additionally, attention must be drawn to essential information about the product, such as prices, discount terms, or health risks.
**Advertising of Medicines and Medical Devices**
The guide clearly states that the promotion of over-the-counter medicines and medical devices that are sold without support from healthcare professionals is not permitted by well-known individuals or health professionals, in accordance with relevant regulations.
**Responsibility Issues**
The guide introduces new rules regarding the distribution of responsibility. The company commissioning the advertisement, the agencies, and the influencers are all responsible for the advertisements they publish. Therefore, it is important for all parties involved to be aware of the legal requirements. In this regard, it is advisable to conduct legal training for influencers and advertising agencies before collaboration to avoid legal violations.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
