Thursday, November 21, 2024

[Brands at Risk as Majority of Influencers Fail to Disclose Ad Content


Influencers failing to disclose paid content, says European Commission

The European Commission has released a new report revealing that four out of five social media influencers do not disclose paid content in their posts. This lack of transparency not only violates advertising guidelines but could also lead to legal consequences for both the influencer and the brand they are promoting.

According to EU consumer laws, influencers are required to be transparent in their posts and disclose any commercial relationships they have with brands. Failure to do so could mislead consumers and violate the Unfair Commercial Practices Directive.

The report analyzed posts from 576 influencers on various social media platforms and found that only 20% consistently disclosed that their content was advertising. Additionally, 30% of influencers did not include any company details in their posts, and 38% did not use platform labels intended for disclosing commercial content.

The European Commission emphasized the importance of transparency in commercial communications and stated that influencers must disclose any promotion of products or services that earn them revenues or benefits. Influencers who sell their own products or services are also required to provide consumers with legal guarantees and withdrawal rights.

Overall, the report highlights the need for influencers to be more transparent in their posts and adhere to legal requirements to protect consumers from misleading information.

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