INSTAGRAM TO ADD LABEL FOR PAID PRODUCT ENDORSEMENTS

SAN FRANCISCO (TIP): Photo-sharing app Instagram plans to roll out a feature on Wednesday that will make it easier to label posts as paid promotions, taking what it called a step toward transparency in an area that has drawn attention from US authorities.

Product endorsements have become more common on Instagram, owned by Facebook Inc, as celebrities and others with large followings on the social network have struck deals to talk up clothing, food and other items.

Known inside the industry as “influencers,” people promoting products are required under truth-in-advertising rules to tell fans about their compensation, according to the US Federal Trade Commission (FTC). It is not clear how many do. Instagram said in a statement that it would begin allowing people who are posting a picture to add a “paid partnership with” label that would appear above the picture.

Users can already add such disclosures below a picture. “As more and more partnerships form on Instagram, it’s important to ensure the community is able to easily recognize when someone they follow is paid to post content,” the company said.

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