Europe investigates influencers: “Stop classified ads”

No more hidden advertising on European influencers’ social profiles. A turnover that should reach 20 billion euros in 2023. The EU Commission has launched an investigation into online posts by social media stars with the aim of “identifying references and sponsorships that mislead consumers”. The results of the investigation could lead Brussels to take legal countermeasures.

The Commission reminds us that influencer marketing has become a pillar of the digital economy. Millions of posts every day are the result of sponsorships of more or less large companies, and sometimes public administrations and politicians. If this activity is carried out with maximum transparency, nothing illegal will happen.

“Influencers who engage in regular commercial activities, such as brand deals to advertise products or services, are considered traders under EU consumer law – Brussels explains – They must disclose advertising in a transparent manner”. However, in most cases this is not done. Therefore, the investigation, carried out in cooperation with local consumer protection authorities, will help to understand what possible legal measures to adopt.

In parallel, the Commission has launched an Impactful Legal Centre. On this platform, influencers and content creators can find information on EU legislation on fair business practices to help them comply with the rules. “The influencer business is booming and many consumers, mostly young people and even children, trust their recommendations,” says Justice Commissioner Didier Reynders. However, this business model also includes legal obligations. Influencers must also follow fair trade practices and their followers have the right to transparent and reliable information. Our Influencer Law Center will be a great help for all players in the industry to understand the rules. I invite influencers to play with them,” Reynders concludes.

Continue reading today

Source: Today IT