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.
![Majority of Influencers caught hiding ads, risking action from EU authorities](/content/images/size/w2000/2024/02/Influencer.webp)
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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