European Market Regulator Finds Majority of Influencers Fail to Disclose Ads on Social Media Posts
European Market Regulator Finds Majority of Influencers Fail to Disclose Ads
A recent probe by a European market regulator has uncovered a concerning trend among social media influencers – the majority of them are failing to disclose when their posts are actually advertisements. The European Commission, along with national consumer protection authorities from 22 Member States, as well as Norway and Iceland, conducted a sweep of nearly 600 influencers’ posts on various platforms such as Instagram, Snapchat, Twitter, and YouTube. The results were alarming, with only one in five influencers consistently indicating that their content was advertising.
The sweep focused on 576 influencers, including those with massive followings of over 1 million, as well as those with between 5,000 and 100,000 followers. The main sectors of activity among these influencers were fashion, lifestyle, beauty, food, travel, and fitness/sport. The investigation also revealed that some influencers were promoting unhealthy or hazardous activities, such as junk food, alcoholic beverages, medical treatments, gambling, and financial services like crypto trading.
Key takeaways from the probe include the fact that 97% of influencers surveyed posted commercial content, but only 20% disclosed it as advertising. Additionally, 78% of verified influencers were engaged in commercial activities, but only 36% were registered as traders at the national level. Many influencers did not provide company details on their posts, and a significant portion did not use platform labels to disclose commercial content properly.
As a result of the sweep, 358 influencers are now under further investigation, and national authorities will be contacting them to ensure compliance with the rules. The European Commission emphasized the importance of transparency in influencer marketing, citing legal obligations under the Unfair Commercial Practices Directive and the Consumer Rights Directive. The upcoming Digital Services Act will also require influencers to declare whether their content contains commercial communications.
Influencers who fail to disclose the commercial nature of their posts may face enforcement action, as the EU Commission is committed to upholding consumer protection laws and ensuring transparency in advertising. The findings of this probe serve as a reminder to influencers and brands alike to be transparent and honest in their marketing practices.