UOKiK Punishes Olimp Laboratories Instagram Crypto Ads

According to the results of the Office of Competition and Consumer Protection Since 2015, Olimp Laboratories has been working with influencers who are paid to publish – According to the guidelines provided by her – her products in entries and stories, including on Instagram.

One such recommendation was to provide the name of the @olimp_Nutrition_pl Instagram account, the names of its individual products or phrases in English, such as #olimpad.

– The nature of the marks used, and often their location as well, meant that the publication did not clearly indicate their commercial nature. What’s more, despite ongoing clarifying procedures, in correspondence with the creators, the company recommended not to disclose the commercial purpose. And the use of a formula, content and promotional form that is not clear to the user, without clearly indicating that it is an advertisement.

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The head of the office imposed a fine of more than PLN 5 million on Olymp Laboratories. He justified that the company performed a special job in the process of creating defiant advertising content.

– As a professional, the advertiser created and made available recommendations to collaborating influencers that were contrary to, and required by, applicable law. The obligation to disclose paid collaboration rests with each of the web developers, agencies, and advertisers. They cannot provide guidance that contradicts the correct labeling of ad content or indicates that applicable law may be circumvented.

👀 the president #UOKiK Fines of more than PLN 5 million have been imposed for incorrect tagging of advertising materials in social media.

🆕 These are the first penalties imposed on both the advertiser and the creators.

Details on 🔗https://t.co/e6BAWppsIV# Featured ads pic.twitter.com/YQxrknKQUN

– UOKi (@UOKiKgovPL) August 28, 2023

This has been noticed Olymp Laboratories in January this year. She stopped actions questioned by UOKiK and is currently in relations with creators of online content, and is following recommendations in this area issued some time ago by the head of the office.

– We are constantly removing practices in the field of incorrect tagging of advertising content in social media. By intervening, we access different tools. We have developed recommendations indicating good practice in line with long-standing law. We have carried out extensive educational campaigns. We have provided a space for all entrepreneurs involved in promoting commercial content on the web to adapt. Now is the time to enforce these rules – commented Thomas Christney, President of UOKiK.

UOKiK has also imposed fines on influencers

In the middle of last year the head of the Office for Competition and Consumer Protection (UOKiK) accused three Instagram content creators of vaguely labeling advertising content: Katarzyna Dziorska, Katarzyna Olskiewicz-Zupa and athlete Piotr Lysek. The allegations relate to posts promoting ia products of Olymp Laboratories.

Now it has been reported The head of the UOKiK imposed more than PLN 23,000 on Piotr Liska. A fine of PLN for Katarzyna Dziorska – 16 thousand. PLN, and Katarzyna Oleśkiewicz-Szuba – 5 thousand. zlotys.

The ad justified that each of them reported the commercial collaboration using tags denoting only the individual advertisers’ trademarks or other terms that did not indicate the advertising nature of the posting, eg promotion of Olimp Laboratories products – “Olympad”). Some content appeared without any indication that it was sponsored. As a result, users were unable to distinguish between entries and stories that were paid for and which constitute an independent opinion of influencers about the products offered. Lysek, Dzyurka and Oleshkevich-Zuba abandoned the activities that the bureau questioned.

Opinions and recommendations of influencers influence consumers’ purchasing decisions. Research shows that among the youngest consumers (ages 15-24), nearly 90 percent have learned about influencer stories, and more than half have purchased a product or service after it was recommended by a content creator they follow. This percentage rises to 63 percent. In a group you see influencer reports regularly. Thanks to an evolving relationship with observers, which is based on trust, creators’ online statements are seen as credible and honest. Paid promotion of products or services should not take place without a clear indication that they are sponsored content – this misleads consumers and constitutes an unfair market practice – explains Thomass-Christney.

Chajzer, Doda, and Rozenek-Majdan with allegations about Instagram

In February of this year, UOKiK President Philip Chazer, Duda and Malgorzata Rosineck accused Magdan of insufficiently labeling advertising content on their Instagram profiles. The contact describes in detail the objections to marketing activities in their profiles and indicates the main advertisers with whom they cooperate.

When asked by Wirtualnemedia.pl, managers of social media agencies differently assessed whether this would have a disciplinary effect on other creators. – Non-compliance with the rules of the Competition and Consumer Protection Bureau, especially by the most influential people in the market, is a clear disregard for attempts to regulate the fast-growing influencer marketing industry – emphasizes Adam Beck.