EU cracks down on undisclosed influencer advertising: 300 face probes 2024-02-14
A Europe-wide investigation has revealed widespread non-compliance with advertising disclosure rules among social media influencers. The sweep, coordinated by the European Commission and national authorities, analyzed posts from 576 influencers across 24 countries. The shocking finding: only 20% consistently disclosed sponsored content, despite nearly all (97%) posting commercially driven material.
This blatant disregard for EU consumer law has triggered action. Over 358 influencers will be contacted by national authorities, urging them to adhere to the regulations. "Further enforcement action" is also not ruled out. Notably, the Commission plans to assess the role of social media platforms in this issue, potentially invoking the Digital Services Act (DSA) to hold them accountable.
The sweep uncovered other worrying trends. While almost 80% of verified influencers engaged in commercial activity, only 36% registered as traders, blurring legal boundaries. One-third didn't even include company details in their posts. Even more concerning, nearly 40% ignored platform-specific labeling tools like Instagram's "paid partnership" option, resorting to vague terms like "collaboration" or "thanks." This deliberate obfuscation misleads consumers and undermines fair market practices.
The sheer number of influencers under scrutiny (including over 80 with millions of followers) highlights the pervasiveness of this issue. It's a significant wake-up call for the influencer marketing industry, emphasizing the need for transparency and adherence to legal requirements. Consumers deserve clear information about paid endorsements, and regulators are sending a strong message that they won't tolerate deceptive practices.
Relevant Links:
- Original Article: https://www.lawsociety.ie/gazette/top-stories/2024/february/influencers-face-probes-after-eu-wide-sweep
- European Commission - Consumer Protection:https://commission.europa.eu/live-work-travel-eu/consumer-rights-and-complaints/influencer-legal-hub_en
- Digital Services Act: https://www.lawsociety.ie/gazette/top-stories/2024/february/eus-dsa-comes-into-effect-on-17-february/