In the European Union (EU), several countries, including France, have taken action against influencers promoting gambling, cryptocurrencies and financial products.
This country-by-country, piecemeal approach has not impressed the European Economic and Social Committee (EESC), which is pushing for region-wide legislation.
The EESC, an advisory body supporting the European Council (EC), has issued an opinion on advertising through influencers and its impact on consumers.This is at the request of the Spanish presidency, which is considering developing legislation on influencers.
With the rapid expansion of social media and influencers globally, the EESC sees an urgent need for similar interventions as the EU is doing for responsible gambling.
The EESC believes that standard guidelines should be developed across the region to ensure fair and clear treatment in this area.
Better control over digital spectrum
The EESC recommended that the EU develop specific guidelines not only for social media platforms, but also for content creators.We want to make it clear that the videos consumers are watching are advertisements, and we propose labeling all such digital publications.
There should also be a regulation that fines influencers who don't display when they are paid for certain posts.In addition, new EU-wide regulations could force content creators to identify the authorities that regulate their commercial postings.
For example, if an influencer promotes a Spanish online casino, his post may have to include a reference to the Gambling Regulation Directorate.For posts promoting online sportsbooks in Germany, you should refer to the Joint Gaming Authority.
Platforms like YouTube and Twitch are also within reach.These platforms may have to meet certain “sector-specific rules” to protect consumers, especially minors and other vulnerable populations.
They may become responsible for the public content they host.Platforms can be fined just like influencers if their publications violate any laws.Platforms must proactively remove illegal publications and report illegal activity to appropriate authorities.
Since the EESC is only a recommendation at this point, it does not go into detail about what kind of supervisory system the EU should establish.However, this opinion opens the door more to harmonized regulation across the region.
An end to the freewheeling activities of influencers
Over the past decade or so, the advertising and influencer marketing fields have seen unprecedented growth.Influencers have gained consumer trust and support due to their credibility and credibility, surpassing traditional advertising and celebrity endorsements.
As a result, it has attracted significant financial support, especially from companies in the gaming sector.That said, unlike traditional advertising, which operates under strict regulations, influencer advertising is largely unchecked.
Often times, people are unaware of the fact that influencer messaging is essentially a form of advertising.Influencers often combine promotional content with independent editorial material, but the underlying intent remains commercial.
By leveraging influencers as product and brand advocates, businesses gain freedom beyond the limitations traditional advertising imposes.But this freedom sometimes leads to marketing campaigns that defy legal boundaries.
This rough and flexible approach is about to change, and EESC believes it's time to make it happen. Although the EESC does not have the power to persuade the EC to accept its recommendations, it enjoys strong relationships with its Council members.As a result, EESC opinions often become part of subsequent legislation.
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