Majority of Influencers caught hiding ads, risking action from EU authorities

A recent investigation by the European Commission and national consumer protection authorities revealed a widespread failure by influencers to disclose paid content. Here's the key takeaway:

80% of Influencers:

• Post commercially driven content (promoted products/services).
• Fail to adequately disclose this as advertising.

This lack of transparency poses several risks:

• Misleads consumers: Consumers may be unaware they're viewing an ad, potentially influencing their purchasing decisions.
• Breaches EU consumer law: Clear regulations mandate proper disclosure of commercial content by influencers.
• Harms brands: Partnering with non-disclosing influencers could damage brand reputation and attract legal repercussions.

Consequences for Influencers:

• EU authorities:
  • May contact influencers for non-compliance and request proper disclosure.
  • Can pursue enforcement actions depending on national procedures.
• Platforms:
  • Obligations under the Digital Services Act (DSA) might require action against non-compliant influencers.

Wider Implications:

• Digital Fairness Fitness Check: Findings fuel discussions about updating EU consumer law to better address influencer marketing.
• Consumer protection: Highlights the need for robust legislation and enforcement to ensure online fairness.

Key Sectors:

• Fashion, lifestyle, beauty, food, travel, and fitness/sport are most prevalent in undisclosed influencer marketing.