Franchise NZ - Summer 2025

49

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Franchise Management

sing influencers or brand ambassadors to promote your business?

Advertising Standards Authority (ASA) publishes guidance on its

website, which clarifies its expectations around influencer advertising.

This aims to increase transparency and provide consumers with

clearer identification of ads in influencer content. While the guidance

is not binding on the ASA’s decision-making boards, it is intended to

help advertisers and influencers comply with the current Advertising

Standards Code, which took effect from 1 February 2019.

This guidance note arose out of the ASA’s handling of complaints

regarding influencer Simone Anderson. In 2020, the Advertising

Standards Complaints Board upheld four complaints about Anderson’s

posts on Instagram, finding her posts were adverts, but were not

clearly marked as such, potentially misleading audiences about her

relationship with the advertiser. This was the first ASA decision involving

substantive issues related to influencer advertising, leading the ASA to

issue further guidance.

The guidance defines an influencer as someone who influences their

audience’s choices, opinions or behaviours and earns income from their

content. This broad definition includes most social media users but

hinges on income generation, which could take the form of payments,

gifts, free products, event tickets or other compensation.

Advertisers and influencers must ensure their adverts comply with the

Code. The Code defines an advert as any message controlled by an

advertiser with the intent to influence audience choices or opinions.

Rule 2(a) of the Code states: “Advertisements must be identified as

such.” This rule sets a high standard, requiring influencers to take steps

to identify their advertisement content appropriately.

Consumers may naturally know they are seeing adverts. However, if

there’s any doubt about a post’s nature, influencers are advised to

label their posts with “Ad,” “Advert” or “Advertisement” (either with

or without hashtags). The label must be prominent, clear and easy

to spot. While additional labels are allowed, they cannot replace the

required identifiers.

For clarity, influencers must label posts featuring gifted products or

services as advertisements, regardless of whether the advertiser

requires the influencer to post, or has any control over, the content. This

approach aims to cover all forms of compensation, making it clear to

audiences when influencers have received something of value.

Responsibility for compliance falls on all parties involved, so advertisers

and influencers are both accountable under the Code. To manage this

effectively, advertisers are advised to establish formal agreements with

influencers, clearly outlining each party’s obligations and expectations,

to reduce the risk of unintentional

brand damage.

For influencers

or brands using

influencer marketing,

seeking expert

guidance can be

beneficial to navigate

the ASA’s guidance

and maintain

compliance with

the Code.

Wynn Williams

www.wynnwilliams.co.nz

Contact

Katrina Hammon

09 300 2647

021 221 8847

katrina.hammon@

wynnwilliams.co.nz

Advertiser Info

Wynn Williams on what

advertisers need to know about

influencer marketing

UNDER THE

INFLUENCE

Liquorland is New Zealand’s premium liquor

franchise with over 170 stores nationwide.

Liquorland benefits include:

Excellent supplier terms

Support office expertise in operations,

merchandise, finance, IT and marketing

Annual profit share rebate

Airpoints, Click & Collect and Online Delivery

Ongoing product and service training

National promotional and marketing programme

Over 40 years’ experience as a Franchisor

Alignment with Foodstuffs NZ

New Zealand’s most preferred liquor retailer*

If you’re customer focused and

in search of a franchise business

that can provide stability and

consistent returns, now is an

exciting time to join Liquorland

If you’re interested in becoming a Liquorland

franchisee please email Dave Yurak at

davey@liquorland.co.nz

*Shopper Tracker Statistics 2023, Reader’s Digest customer

preferred Liquor Retail Chain Gold Award 2023 (8 years running)

www.liquorland.co.nz