The Regulation of Online Influence: EU Crackdown on Influencer Marketing Transparency
The regulation of online influence is a hot topic in the European Union, with the Belgian presidency taking a strong stance on the issue. Recent research commissioned by the European Commission has revealed some concerning trends among social media influencers, prompting calls for stricter legislation at a national level.
The study, which analyzed the posts of 576 influencers across various social media platforms, found that a staggering 97% of them were posting commercial content. However, only 20% of these influencers were transparently disclosing that their content was advertising, as required by the Unfair Commercial Practices Directive.
The sweep of influencer accounts, led by the Belgian Directorate-General for Economic Inspection, spanned across EU member states as well as Iceland and Norway. It identified 358 influencers who were not complying with the rules and will be contacted by national authorities for further action.
One concerning finding was that 38% of influencers did not use platform labels to disclose commercial content, potentially misleading their followers. This lack of transparency has raised alarms among regulators, especially as the influencer industry is projected to generate $24 billion globally this year.
EU Commissioner for Justice, Didier Reynders, emphasized the need for influencers to be more transparent with their audience, particularly as many of their followers are minors. The study also revealed that while 78% of influencers were verified for commercial activity, only 36% were registered as traders at a national level.
Sofia Mogliazzi, director of talent partnerships for VaynerMedia EMEA, highlighted the importance of authenticity and transparency in influencer marketing. With millions of influencers vying for attention, maintaining credibility is crucial for success in the industry.
As the debate around online influence regulation continues to grow, it is clear that transparency and accountability are key factors in ensuring consumer trust and protection in the digital age.