INFLUENCER MARKETING – THE JUDGMENT AGAINST CLEAN EATING
Clean Eating AB and the influencer Katrin Zytomierska were recently judged to have contravened the rules on advertising in the Marketing Act. The judgment once again throws light on influencer marketing and how marketing must be designed.
All material intended to promote sales of a product must be clearly labelled as advertising. A mere reference to the company is not enough. The consumer must immediately be able to understand that it is an advertisement. Even temporary removal of labels indicating that it is an advertisement is a breach of the Marketing Act. If an influencer fails to advertise in accordance with the applicable legislation, the company whose products are being marketed may also be held liable for defective marketing and may be sanctioned for the infringement.
- All images and videos intended to promote sales must be labelled as advertising in a clear manner that can be immediately understood by consumers.
- The company behind the products must be clearly identified, along with an indication that the image or video consists of marketing for the company in question.
- Make sure that partners are aware of this and that they undertake to comply with it.
- Check to ensure that labels indicating that an image or a video is advertising are not removed.
THE SWEDISH CONSUMER AGENCY EXAMINES THE MARKETING OF “SALES”
The Swedish Consumer Agency is carrying out a comprehensive examination of companies’ price reduction campaigns during the autumn in order to investigate retailers’ compliance with the new rule on price information. The new rule, with a subsequent standpoint from the Swedish Consumer Agency, will be of great significance for the way in which companies are permitted to market price reductions.
In the case of sales or other marketing of price reductions, the reduction must be calculated on the basis of the 30-day price, which is the lowest price for the product applied by the company in the 30 days immediately prior to the price reduction. Any other reference price, for example by indicating a certain ordinary price, is typically not permitted. The 30-day price must be clearly stated in immediate proximity to the reduced price.
- Always indicate the lowest price applied in the 30 days immediately prior to the price reduction as a reference price when marketing sales.
- The 30-day price must be indicated in the immediate vicinity of the reduced price in a way that is easily understandable for the consumer.
- Calculate the price reduction on the basis of the 30-day price.
DIRECT MARKETING – THE PENALTY FEE IMPOSED ON H&M
A penalty fee was recently imposed on H&M by the Swedish Privacy Protection Authority (IMY) for shortcomings in its handling of individuals’ requests to be unsubscribed from the company’s newsletters. When registered customers ask for their personal data not to be processed for the purpose of direct marketing, such as in the form of a newsletter, that request must be dealt with promptly. The length of time the processing may take is assessed according to the circumstances in each individual case. In the decision against H&M, a period of two days was considered reasonable for the company to deal with a request for deregistration from direct marketing.
- Have internal procedures that allow registered customers to easily exercise their rights.
- Ensure that customers’ requests to unsubscribe from direct marketing are dealt with promptly.