According to a European Union study released on Wednesday, four out of five influencers on social media are failing to disclose their commercial content as advertising, as required by EU law. The study, which screened 576 influencers, revealed that nearly all (97%) of them were sharing commercial content, yet only 20% consistently indicated that it was advertising, as stated by the European Commission in a statement.

The European Commission, in collaboration with national consumer protection authorities from 22 EU member states, Norway, and Iceland, spearheaded the study. They examined posts on various social media platforms, including Instagram, TikTok, YouTube, Facebook, X (formerly Twitter), Snapchat, and Twitch, aiming to verify compliance with EU consumer law, particularly the Unfair Commercial Practices Directive.

The EU executive highlighted the necessity for modern and robust legislation to address problematic marketing practices, emphasising the importance of ensuring digital fairness for consumers online.

While the influencers involved were not named, the Commission disclosed that 358 of them were earmarked for further investigation. National authorities will reach out to these influencers to ensure compliance with existing rules, with the possibility of further enforcement action if needed.

The study revealed that the majority of posts centred around fashion, lifestyle, beauty, food, travel, and fitness. Alarmingly, it found that 119 influencers were promoting unhealthy or hazardous activities, including junk food, alcoholic beverages, medical or aesthetic treatments, gambling, and financial services such as crypto trading.

These findings will contribute to the ongoing digital fairness fitness check on EU consumer law, initiated by the European Commission in spring 2022. This assessment aims to determine whether the current EU legislation, including measures to combat unfair commercial practices, adequately safeguards consumer protection standards.

FAQs

What specific consequences or penalties do influencers face if they fail to disclose their commercial content as advertising, as required by EU law?

The consequences for influencers who fail to disclose commercial content as advertising vary depending on the severity and frequency of the violation. In general, penalties may include warnings, fines, or other enforcement actions imposed by national consumer protection authorities. These measures aim to ensure accountability and compliance with EU consumer law standard

How does the European Commission plan to ensure compliance among influencers who were identified as not consistently indicating their commercial content as advertising?

The European Commission intends to ensure compliance among influencers flagged for inadequate disclosure through coordinated efforts with national consumer protection authorities. These authorities will engage directly with the identified influencers to reinforce understanding of the legal obligations and encourage adherence to disclosure requirements. Continued monitoring and potential enforcement actions will be pursued if necessary to uphold transparency in advertising practices on social media platforms.

Are there any recommendations or proposed changes to existing EU legislation mentioned in the article to address the issues highlighted by the study, particularly concerning the promotion of unhealthy or hazardous activities by influencers?

The study’s findings underscore the need for ongoing evaluation and potential adjustments to existing EU legislation to address emerging challenges in digital marketing. Recommendations for enhancing consumer protection standards may involve strengthening disclosure requirements, expanding regulatory oversight, or introducing measures to mitigate the promotion of harmful or misleading content by influencers. These considerations will inform the ongoing digital fairness fitness check on EU consumer law, facilitating informed decisions on policy reforms to safeguard consumer rights in the evolving digital landscape.