Reality TV Star Lauren Goodger Caught in Financial Conduct Authority’s ‘Finfluencer’ Crackdown
Financial Watchdog Takes Action Against Social Media Influencers
The Financial Conduct Authority has charged several ‘finfluencers’ – including former Only Way is Essex star Lauren Goodger – for promoting an unauthorised trading scheme to their social media followers.
The Case Details
The charges are part of Britain’s first crackdown on “finfluencers.” According to the FCA, Emmanuel Nwanze and Holly Thompson offered advice on buying and selling high-risk contracts for difference (CFDs) through Instagram between May 2018 and April 2021 without proper authorisation. Nwanze allegedly paid several influencers, including Lauren Goodger, to promote the Instagram account to their millions of followers.
Potential Consequences
The accused influencers, who collectively have an audience of 4.5 million followers on Instagram, were recruited to promote an account that “offered advice on trading high-risk foreign currency.” If found guilty of issuing unauthorised communications of financial promotions in violation of the Financial Services and Markets Act 2000, they could face fines and up to two years in prison.
Background and Current Status
On July 11, 2024, at a plea and trial preparation hearing at Southwark Crown Court, Goodger, along with other defendants, pleaded not guilty to one count of issuing unauthorised communications of financial promotions. The case has raised concerns at the FCA about the high levels of trust young consumers place in these types of influencers, despite their information sometimes being misleading. The financial regulator is now warning finfluencers to verify the products they promote to ensure they are not breaking the law or putting followers’ money at risk.
Professional Career Update
Lauren Goodger, who initially rose to fame on the ITVBe reality show The Only Way Is Essex from 2010 until 2012, has made a permanent return to the series in 2024, even as she faces these serious legal challenges.