• The Organization of European Consumers (BEUC) asks the European Union for a regulatory reform of influencer marketing similar to the one recently adopted by France.
This reform should include a ban on the promotion of foods high in fat, sugar and salt (HFSS) to children. Better regulation of influencer marketing and elimination is thus sought "harmful commercial practices" often used by them.
"Influencer marketing" refers to an economic agent or person acting on behalf of a trader who advertises products or services for remuneration or promotes their own products.
It is a fast growing sector and which, according to the European Consumers Organisation (DRINK), comes with problematic practices for consumers, such as this promotion of unhealthy foods to children.
In France, the government recently banned the promotion of certain products on social media due to the risk of harm to consumers and public health interests. These products and services include cosmetic surgery, nicotine products, advertising involving wild animals and betting sites.
BEUC welcomed France's position but noted an important omission: the promotion of unhealthy food and drink to children. Thus, it calls for a regulatory reform similar to the one recently adopted by France, but which also includes a ban on the promotion of foods high in fat, sugar and salt (HFSS) among children.
Masked advertising
Influencer marketing has revolutionized advertising campaigns, which were traditionally controlled and regulated, he explained BEUC in the document "From Influence to Accountability: It's Time to Regulate Influencer Marketing" (From influence to responsibility: Time to regulate influencer marketing), published in July of this year.
While previously consumers could easily identify an ad, nowadays anyone with a social media account can advertise. "The line between editorial and advertising content is increasingly blurred for consumers", the Consumer Organization document states.
What is abundantly clear is the effectiveness of influencer marketing. In a survey conducted by Open Evidence on behalf of BEUC, more than half of the respondents stated that they bought products or services recommended by influencers.
A survey conducted in 2019 in France, Germany, Australia and the USA on behalf of Rakuten Marketing showed that among consumers who actively engage on social media platforms, 41% recently discovered new brands and products through influencers, with 80% purchasing the product directly through the link provided by the influencer.
Proposed definition for "influencer marketing"
BEUC points out that at the EU level, there is no specific legislation regarding "influencer marketing", although the Unfair Commercial Practices Directive (UCPD) also applies to influencer marketing practices. Also, there is currently no definition for "influencer marketing" within the EU legislation.
BEUC proposes the development of a European Union-wide strategy to address the issues raised by influencer marketing, starting with an added definition within the Unfair Commercial Practices Directive (UCPD).
BEUC's proposed recommendation for a definition would be the following: "Influencer marketing is an action by which a natural or legal person communicates, by electronic means, content intended to directly or indirectly promote goods, services or any other causes, with a commercial intention, to an audience with which that person builds relationships (mainly on social media platforms) and engage online or otherwise with commercial entities through various business models for the purpose of monetization.”
Other suggestions include using a clear and unique term such as "advertisement", to increase transparency within posts. BEUC wants to ensure that all actors in this "value chain" of hidden promotion will be held accountable, including influencers, their agencies and brands. The introduction of joint and several liability between them would ensure that, in case of violation of the requirements of consumer protection legislation, all participants will be held liable. This is already being looked at nationally in Norway, Belgium, the Netherlands and the United Kingdom. In case of non-compliance, the consumer organization proposes the application of sanctions, such as a percentage of the annual turnover.
Growing trend
The consumer organization has seen an increasing number of influencers entering into paid partnerships with brands promoting HFSS products, many of which are aimed at children. "The rules are too lax, not adapted to new digital marketing practices, especially influencer marketing, and still allow the marketing of foods high in fat, salt and sugar to children."
At the same time, in its current form, when covert advertising takes place, it is not clear whether all actors in the value chain, such as influencers themselves, brands, online platforms and influencer agencies, are held accountable.
BEUC recommends that online marketing of unhealthy food products, including influencer marketing, be banned and added to the annex to the UCPD as an unfair commercial practice "in all situations".
"In our opinion, the recently established bans in France should serve as a basis for the European Commission to establish an EU-wide ban on the promotion of these products and services by influencers", notes the European Consumer Organization.
In addition, BEUC suggests that competent law enforcement authorities should "name and shame" non-compliant influencers, agencies and merchants. And in the case of a sanction by a national authority or a court, influencers should be obliged to refer to the decision of the national authority at the beginning of each publication for a period "long enough".
BEUC asks the Commission to consider amending the annex to the UCPD to prohibit the direct or indirect promotion by influencers of HFSS foods to children, as well as alcoholic, gambling and medical products.
Article written by Gabriela Dan, Editor of Arta Albă
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