European Commission Study Reveals Lack of Transparency Among Social Media Influencers

European Commission Study Reveals Alarming Lack of Transparency Among Social Media Influencers

A recent study conducted by the European Commission has shed light on a troubling trend among social media influencers – the majority of them are failing to disclose paid content. This omission not only violates advertising guidelines but also raises legal implications for both influencers and the brands they promote.

European Union regulations mandate influencers to maintain transparency in their posts, ensuring they do not disseminate false or deceptive information about products or services. Specifically, influencers must disclose any financial or non-monetary benefits received from endorsing a brand’s offerings.

The study examined posts from 576 influencers across major social media platforms and uncovered significant deficiencies. While nearly all influencers (97%) shared content with commercial intent, only a minority of 2 in 10 (or 20 percent exactly) consistently disclosed the promotional nature of their posts.

A notable portion (30%) omitted essential company details, such as contact information or registration particulars. Furthermore, a considerable percentage (38%) failed to utilize platform-provided disclosure tools, opting for ambiguous terms like “collaboration” or “partnership.”

Moreover, a substantial proportion (40%) did not ensure continuous visibility of disclosure throughout their commercial communications, while a significant fraction (34%) did not prominently display the disclosure, necessitating additional steps for viewers.

Of particular concern is the revelation that among influencers marketing their own products, a majority (60%) neglected to consistently disclose the advertising nature of their content. In response, the European Commission emphasized the importance of transparency in commercial communications, stressing that EU consumer law mandates transparency to prevent consumer deception regarding promoted products or services. Any endorsement of a brand’s offerings in exchange for influencer benefits must be unequivocally disclosed as advertising.

These findings underscore the imperative for influencers to adhere to regulatory requirements and uphold consumer trust through transparent communication practices.