Instagram to add 'paid partnership' for sponsored endorsements to improve transparency

Photo sharing platform Instagram will roll out a feature that allows the use of a 'paid partnership' subheading to reveal sponsored posts and stories, taking what it called a step toward greater transparency.

First reported by Recode, the move comes two months after a study by Mediakix that found 93 percent of sponsored posts were not clearly labeled and although Instagram's new process is not mandatory, the Federal Trade Commission (FTC) could choose to take action against those who ignore it.

Image: Instagram

Image: Instagram

Product endorsements have become more common on the application based platform owned by Facebook Inc. as celebrities and models with large followings on the social network have struck deals to talk up clothing, food, jewellery and other products as well as services. The tool is however design to make the tagging process quick and easy for creators. The post or story will appear with a sub-header that reads 'Paid partnership with,' followed by a tag to the business partner's account.

"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," said the Facebook owned company which has 700 million monthly active users.

Updated Date: Jun 15, 2017 22:55 PM