Labelling Ads on Instagram

In recent years, Instagram has become one of the most popular social networks in the world. Many people use the platform not only to share their pictures and stories, but also to shop and to find out about products and services. As Instagram has grown in popularity, advertising on the platform has become more important too. But in what form does advertising have to be labelled, and who is responsible for labelling it?

The basic rule is this: anyone who wants to advertise on Instagram must make sure that their advertising is labelled as such. This matters not only for ethical reasons, it is also required by law. Labelling advertising is a legal obligation that exists in many countries, including Germany. Under German law, the labelling of advertising is governed by § 5a of the Act Against Unfair Competition (UWG). According to this provision, advertising content must be labelled as such so that consumers are not misled. The label must be so clear and distinct that consumers can see straight away that they are looking at advertising.

On Instagram, labelling advertising is particularly relevant because many influencers and brands work with what is known as "sponsored content". These are posts for which the creator is paid by the brand or company. This content must be labelled as advertising because the creator gains a financial benefit from it. There are several ways to label advertising on Instagram. One option is to include the hashtag #Werbung or #Anzeige (the German terms for advertising) in the caption. Alternatively, you can use the "Paid partnership with..." feature that Instagram provides. This tags the partner directly in the post, and a "Paid partnership" label appears above the image.

In every case, it is important that the advertising label is clearly visible and not hidden. Hidden advertising can not only have legal consequences, it can also damage followers' trust in the person who created the post.