France is eyeing new fronts to deal with demonstrators rampaging in the streets over unwanted pension reforms.A bill is about to be introduced to reduce the influence influencers have on gamblers and cryptocurrency investors.
Bill 790 is an attempt to address the promotion of unregulated or unlicensed activity in the country by influencers on social media.Crypto projects are not licensed in France, effectively cutting off the content creator segment.
The bill prohibits advertising in exchange for games of skill or chance, video games including loot boxes, pharmaceuticals, and cryptocurrency rewards.Anyone who fails to comply with this law faces up to two years in prison and a fine of €2 (US$30,000).
This legislative action could also affect social media platforms.Although not fully explained, the text of the bill indicates that violations of the law can also lead to repercussions for "distribution platforms" such as YouTube and Instagram.
“The bill aims to empower and sanction, where appropriate, all influencers, their agencies, advertisers and distribution platforms to better protect users and consumers of social networks. It is to build and strengthen a legal system that allows us to do so,” explains French Bill 790.
Bill 790 is already gaining support in the French parliament.The National Assembly's economic committee approved it on Wednesday and it will now be submitted to the entire parliament and the Senate.
There is no time to wait until a final decision is made.
target influencers
Influencers who break the law can also face different penalties, although they are more difficult to enforce.It means that you may be temporarily or permanently banned from acting as an influencer.
Influencers have been at the center of the discussion in France for the past few weeks. Three weeks ago, the Directorate General of Competition, Consumer Affairs and Fraud Prevention found that 3% of the 2021 influencers and agencies it targeted from 60 onwards did not respect advertising regulations and consumer rights policies. clarified.
crackdown on fraud
The law stems from several scams that have infiltrated France's digital channels and gained momentum this year.
This past January, more than 1 people joined a class action lawsuit against two people who encouraged them to invest and trade in cryptocurrencies.The investment turned out to be a fraud.Influencers are now hiding in Dubai to avoid persecution.
This is the same scam that landed in the offices of the US Securities and Exchange Commission (SEC).
The SEC is also pursuing influencer and MMA fighter Jake Paul, actresses Lindsey Lohan and Justin Sun for illegal promotion.Sun is the founder of the crypto project Tron, which the SEC has accused of manipulating the market and offering unregistered securities.
Last year, French influencer and reality TV star Laurent Correira also made a big splash.He is credited with playing a major role in the “Billionaire Dogs Project,” a non-fungible token (NFT) recruitment.The project fell through, but not after raising just under $100 million.
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