Influencers face scrutiny as EU sweep exposes transparency issues

Just one out of every five influencers reveals that their content is actually advertising.

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The European Commission, along with 22 member states, Norway, and Iceland, conducted a sweep of social media posts from influencers to assess compliance with EU consumer law. The findings revealed that 97% of influencers posted commercial content, but only 20% consistently disclosed it as advertising. Moreover, 78% of influencers were engaged in commercial activities, yet only 36% were registered as traders at the national level.

Among the influencers surveyed, 30% did not provide company details on their posts, and 38% did not use platform labels like ‘paid partnership’ to disclose commercial content, opting for terms such as ‘collaboration’ or ‘partnership.’ Additionally, 40% did not make the disclosure visible throughout the entire communication.

The sweep identified 358 influencers for further investigation, with national authorities set to contact them for rule enforcement. The European Commission will analyse the results in the context of the Digital Services Act (DSA) and take necessary enforcement action. The findings will also contribute to the Digital fairness fitness check on EU consumer law, evaluating legislation on dark patterns, personalisation practices, influencer marketing, and more.

The sweep encompassed influencers from 24 countries across various social media platforms, with the majority in the fashion, lifestyle, beauty, food, travel, and fitness/sport sectors. Some influencers promoted unhealthy activities like junk food, alcoholic beverages, medical treatments, gambling, or financial services.

EU consumer law mandates transparency in commercial communications, requiring influencers not to mislead consumers. The Influencer Legal Hub, launched in 2023, provides influencers with information on EU law compliance. The Digital Services Act, effective from 17 February 2024, harmonises obligations for online platforms, ensuring influencers declare commercial communications and meet traceability requirements.

Influencers selling products have legal obligations akin to online shops, including providing guarantees and withdrawal rights. The Audiovisual and Media Services Directive imposes specific rules on influencers offering audiovisual content. Compliance with guidelines on audiovisual commercial communications and the protection of minors is mandatory.

The sweep underscores the need for robust legislation to ensure digital fairness for consumers online. The results will inform the Digital fairness fitness check, evaluating the adequacy of current directives in addressing consumer protection issues in the digital market.