Influencer marketing: A matter of liability and ethics

Influencer marketing: A matter of liability and ethics

The use of celebrities and influencers in social media marketing is increasing. However, this has come with cases of false advertising where consumers bear negative consequences.

In this article, Dr Bui Quoc Liem, a lecturer in Professional Communication at RMIT University Vietnam, explains why celebrities are accountable for what they advertise not only because of legal requirements but also ethical considerations.

The influence of celebrities in advertising

Celebrity and influencer marketing is booming in Vietnam, fuelled by high social media usage and consumer trust in internet personalities. According to the Influencer Advertising - Asia report by Statista Market Insights, Vietnam had 1,132 influencers with over 1 million followers as of 2024. In addition, there were more than 32,000 influencers with less than 100,000 followers, indicating the strong growth of this field in the country.

Although there are no concrete data on the number of celebrities participating in advertising activities, the Vietnam Influencer Marketing 2024 report by REVU revealed that 97 per cent of businesses in Vietnam believe that influencer marketing is an effective form of marketing, higher than the global average (84.8 per cent). This reflects the popularity and importance of celebrities in contemporary advertising campaigns.

The appearance of celebrities and influencers in advertising can create a strong viral effect, making it easier for products to reach and appeal to consumers. However, this trust also poses a great risk as consumers can easily be led astray by inaccurate or misleading advertisements.

Influencer livestreaming Celebrity and influencer marketing is booming in Vietnam. (Photo: KMPZZZ – stock.adobe.com)

Legal responsibility of celebrities in product endorsements

In Vietnam, the regulatory framework for advertising activities includes several important legal documents. The Law on Advertising 2012 is the main foundation, regulating the truthfulness and accuracy of advertisements and strictly prohibiting advertising acts that mislead consumers.

The Law on Protection of Consumer Rights, first issued in 2010 and replaced by a new edition in 2023, also plays an important role in protecting consumers from misinformation and allowing them to claim damages if they are affected by false advertising.

In addition, Decree 38/2021/ND-CP prescribes administrative penalties for advertising violations, including false advertising, with fines of up to VND100 million.

Celebrities participating in advertising are legally required to ensure that the information they provide is accurate, does not mislead, and has been verified. This responsibility is strongly highlighted when it comes to dietary supplements, pharmaceuticals, and cosmetics products where false information can have serious consequences for consumers' health. Penalties can include administrative fines, requests to remove false advertising content, and even compensation for any damages incurred by consumers.

In recent years, authorities such as the Ministry of Industry and Trade and the former Ministry of Information and Communications have strengthened their management of social media advertising to prevent violations and protect consumers. A draft law amending and supplementing a number of articles of the Law on Advertising is being discussed by the National Assembly and is expected to be ratified on 11 June 2025. The draft includes a proposal to increase the liability of celebrities and influencers in advertising.

In fact, many celebrities and influencers have got fined for unlawful advertising. Viya, who is dubbed the “queen of livestreaming” in China, was accused of selling counterfeit products and a company associated with her was fined 530,000 yuan (VND1.9 billion) for breaking advertising laws regulating food and cosmetics.

Recently, two Vietnamese TV personalities were fined a total of VND107.5 million for misleading claims about the effectiveness of a milk product, garnering a lot of public attention. Another prominent case concerns Kera vegetable gummies, which started as allegations of false advertising before turning into a criminal case with several celebrities being prosecuted and detained. Such cases are proof that the law is not just an abstract concept but is seriously enforced.

Dr Bui Quoc Liem, lecturer in Professional Communication, RMIT University Vietnam Dr Bui Quoc Liem, lecturer in Professional Communication, RMIT University Vietnam

Ethical and professional responsibility

However, the consequences are not limited to legal liability. Celebrities can lose public trust, causing serious damage to their reputation and career. Loss of public trust can lead to the loss of advertising contracts and other partnership opportunities.

Furthermore, the misconduct of one celebrity can have a ripple effect, undermining consumer confidence in the entire industry. For example, if a celebrity falsely advertises a dietary supplement, this can undermine consumer confidence in other dietary supplement products, including those of good quality and reputation.

The public tends to trust celebrity endorsements by default. When a celebrity endorses a product, especially in the health or beauty industry, consumers often take it as trustworthy advice. This places a high ethical requirement on celebrities: they must not pursue personal profit at the expense of the potential negative consequences for consumers.

Not every product is worthy of being advertised, and celebrities need to consider carefully before agreeing to advertise for a brand. Criteria may include: Is the product safe for users? Has it been fully tested for quality? Is its origin transparent and clear?

To protect their personal and professional ethics, celebrities need to adhere to the principle of “know-verify-take responsibility”. They need to learn about the products, verify advertising claims before speaking publicly, and be willing to take responsibility for their public statements.

The future of influencer marketing

Product advertising is not only a commercial activity but also a commitment to social responsibility. Celebrities, with their great influence, need to be deeply aware of this. They should continually improve their knowledge of advertising regulations, build solid professional ethics, and put the interests of consumers above personal profits.

Meanwhile, continuous improvement of the legal framework is needed to match the rapid development of the digital environment and modern media behaviours. Law enforcement needs to be strengthened to ensure its deterrent effect, and effective monitoring measures will help promptly detect and handle violations.

In short, celebrities cannot simply “speak out when paid” but must take responsibility for their words, especially when those words have the potential to mislead the public. Only then can we build a healthy, transparent advertising environment and protect the legitimate rights of consumers.

Story: Dr Bui Quoc Liem, lecturer in Professional Communication, RMIT University Vietnam

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