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

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.

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