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Crackdown after social media influencer investigation
A crackdown has been launched after a social media influencer investigation raised concerns that some product endorsements may be breaching vital competition law.
The Competition and Markets Authority (CMA) has reportedly written to a number of high-profile celebrities about their social media influencing habits. As a result of the warning letters, some social medial influencers have promised to clearly state if they’re being rewarded for endorsing products. Among those who have made the formal commitments are singers Rita Ora and Ellie Goulding.
We welcome this move and the cooperation of those involved so far.
Investigation into financial services sector for suspected anti-competitive practices
The CMA opened an investigation into the financial services sector for suspected anti-competitive practices at the end of last year.
The investigation has only just begun, so no assumptions are made as of yet. The particular companies who may be of interest in the investigation are yet to be named, and it’s the initial information-gathering stage that has begun.
The financial services sector is a huge one, so healthy competition is important. Any breaches of the law will need to be punished accordingly.
Loyalty penalty CMA investigation concludes
The massive loyalty penalty CMA investigation – deemed a ‘super complaint’ – has resulted in a set of reforms to stop the issue affecting people.
The investigation found “damaging practices by firms, which exploit unsuspecting customers”. This issue is estimated to equate to a cost to the consumer in the region of £4bn per year. There are thought to be millions of people affected by loyalty penalties.
The loyalty penalty CMA investigation looked at five markets: savings; insurance; mortgages; mobile phone contracts; and broadband. New regulatory rules are set to be introduced to stamp out the loyalty penalty endemic.
The CMA statutory audit market investigation
The CMA’s (Competition and Markets Authority) statutory audit market investigation was launched last month.
A number of key issues are being looked into by the CMA to make sure that the market is working fairly and efficiently. Comments on the key issues are being invited, and a statutory deadline has been applied to the investigation.
It’s early days, with the investigation only being launched last month. It’s another important one for us to keep an eye on as lawyers who fight for competition to be fair and consumer-focused!