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The Norwegian Consumer Agency warns of hefty fines.
In early March 2020, Sophie Elise Isachsen encouraged her 400,000 Instagram followers to follow a new account called “litt.sophie.” Followers were informed that the account would be used to share posts about “the books I read, quotes that I like, generally things that inspire me, and personal texts.”
In a post about the book’s new account, followers were encouraged to take a look at the link in the account description, where something “very exciting awaited them.” Here, consumers can leave their email address to access a website before others, reports the Consumer Agency in a press release.
In June, Sophie Elise Isachsen and Strawberry Publishing launched a book club called “Little Sophie.” The “litt.sophie” Instagram account became an official book club account at the same time. At the same time, more than 4,000 people received a newsletter with announcements of the new book club.
The Norwegian Consumer Agency believes that the book account has most likely been part of the book club’s marketing strategy from the beginning, but that this has not been clear to consumers. Under the Marketing Act, companies are prohibited from giving the impression that they are not acting for purposes that apply to their own business activities. A business can raise awareness of a new product or service without disclosing the product or service itself right away, but consumers need to understand that they face advertising.
Instead of clarifying the business purpose of the account, consumers have been led to believe that the account was something personal to Sophie Elise, says Trond Rønningen, director of the Norwegian Consumer Agency.
Consumers who left their email address after visiting Isachsen’s new account also received no information that the registration involved receiving marketing.
– The Marketing Act is clear that companies must have valid consent to send email marketing. It is absolutely essential that consumers receive information that consent implies receiving marketing, says Rønningen.
After a thorough assessment of the case, the Norwegian Consumer Agency has notified decisions on infringement fines in the order of NOK 300,000 against Strawberry Publishing AS and NOK 200,000 against Sophie Elise AS. Companies have a deadline of January 15, 2021 to submit their comments on the notice.
Dagbladet, who was the first to bring up the case, is told by Strawberry Publishing CEO Alexander Even Henriksen that attorney Jon Wessel-Aas has been asked to evaluate the warning and respond on behalf of the publisher and Isachsen within the term.
– We have recently received this notice. The case raises questions about what and from what moment something is considered marketing according to the law, in cases where a business concept is developed based on someone’s personal profile on social media, he writes in a text message to the newspaper .
Petter Stordalen is the founder and co-owner of Strawberry Publishing. In November, it sold 70 percent of the group.
The online newspaper has tried to contact Isachsen, but has received no response so far. We will update the case when we receive it.
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