The most significant law in regards to Instagram advertising is the Consumer Protection Act. The marketing provision of the Consumer Protection Act always applies to businesses who in order to obtain income or other economic benefit, deals in, sells or otherwise offers consumer goods or services on a professional basis and for consideration. If you seek to promote your products through an influencer’s Instagram account, you always have an obligation to comply with the provisions of the Consumer Protection Act. It is important to note that an Instagram influencer may also be considered as a “company”, as defined by the law due to the professional nature of their Instagram account. Then the influencer must also ensure that the partner- and sponsorships are properly disclosed in accordance with the Consumer Protection Act.
According to Chapter 2, Section 4 of the Consumer Protection Act, marketing must clearly show its commercial purpose and on whose behalf the marketing is implemented. According to the reasoning behind the provision (HE 194/2001), Section 4 applies to marketing in general regardless of the methods used. The consumer must therefore always know that a business is seeking to influence them commercially.
The concept of marketing under the Consumer Protection Act is extensive. It refers to all commercial communications aimed at promoting the sale of a product or service. The Consumer Protection Act therefore covers all forms of advertising, including advertising or promotion on Instagram.