Social media has changed many aspects of our lives, but especially the way advertisers promote their products.
Widely recognized as an unregulated sector, the European Commission has launched a “conformity check” to determine whether current EU consumer law is adequate to ensure a high level of consumer protection in the digital environment. did.
The results of an investigation conducted by the European Commission in cooperation with national protection authorities into the disclosure of commercial content by social media influencers will be incorporated into the Digital Fairness Fitness Check. The commission aims to complete compliance testing by the first half of 2024.
Italian influencer Chiara Ferragni made headlines last year when she was fined €1 million for “improper business practices” for making false claims related to charity work. She was also forced to apologize on social media.
The influencer teamed up with Barocco to launch a Pandoro with the Ferragni logo for 9 euros, three times the regular price. The product box stated that the sale would be a donation to the Regina Margherita Children's Hospital in Turin, but in reality, the donation of 50,000 euros had already been made by Barocco alone before its release, and Ferragni The campaign raised 1 million euros.
Mr Ferragni apologized for a “miscommunication” regarding Pandoro and announced that he would donate the 1 million euros he received to a hospital in Turin.
A spokesperson for the Malta Competition and Consumer Authority (MCCAA) told MaltaToday that from a consumer law perspective, influencers who earn income from the social media content they create are subject to Part 8 of the Consumer Affairs Act. It is regulated by the Unfair Commercial Practices Regulations based on the Act. . These regulations prohibit commercial practices that mislead consumers or that could distort the economic behavior of the average consumer.
“Unlike traditional advertising, influencer endorsements are often confused with everyday content, so consumers are not always aware that influencer content has commercial potential. ” she said. “By not disclosing the commercial nature of their posts and stories, influencers are typically using the product when in fact they are acting in the name of or on behalf of the trader. This is prohibited by the Unfair Commercial Practices Directive. Influencers are therefore legally required to clearly disclose commercial content.”
What should influencers do when promoting products?
According to a spokesperson, when promoting products on their social media pages, influencer disclosures must be clear, visible, conspicuous, and appropriate for the social media platform used. That's what it means.
Disclosures should be used at the beginning of the post/story and should not require extra clicks to appear. The disclosures that should be used are those available on social media platforms such as #advert or #advertising, or “paid partnerships.”
“Hashtags such as #gifted, #partner, #ambassador are considered unclear and are not accepted as alternatives. Tagging only a brand without clearly disclosing the advertising content is also unacceptable,” she said. Stated.
What do influencers think?
MaltaToday contacted several Maltese influencers to gauge their opinion on the new regulations.
Fashion content creator Malcolm Gauci said he was aware of the new regulations and expressed his support for the new rules.
“Transparency is key and this regulation is consistent with our commitment to providing clear and understandable information,” he said.
Singer and influencer Maxine Paice had similar sentiments and said she agreed with the restrictions. “I try to follow the rules as much as possible,” she said.
Influencer Stephanie Agius said regulation would help ensure transparency and fairness in influencer marketing.
“While regulation may pose some challenges, I believe it can encourage creativity within ethical bounds and ultimately increase trust with audiences,” she says. I did.
Agius also argued that a balance between compliance and reliability is key. “I maintain credibility by staying true to my values and interests while complying with regulations through clear disclosure and honest communication.”
Malcolm Gauci said that despite the restrictions, the content he shares, sponsored or not, reflects who he is.
“My posts genuinely reflect my opinions, and sponsorship does not alter their authenticity. My viewers value my point of view, regardless of the promotional nature of the content. We strive for balance and consciously mix sponsored and non-sponsored content to maintain authenticity and provide a balanced experience for our followers. At the end of the day, our sponsors Regardless of my involvement, the essence of my content is honesty,” he said.
Gauci and Agius both said they don't see a major change in brands' willingness to cooperate.
“It is also my responsibility as a content creator to let the brands I work with know that our partnership will be explicitly disclosed on social platforms,” Gauci said.
