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A new report reveals that undisclosed promotional content on platforms like TikTok and Instagram is widespread, prompting calls for stricter regulations to protect consumers, particularly young people.
European consumer organizations are sounding the alarm over the pervasive issue of hidden advertising employed by influencers on social media. A recent analysis indicates that a important majority of sponsored content fails to clearly disclose brand collaborations, raising concerns about manipulative marketing tactics and their impact on consumer behavior.
Widespread Lack of Transparency
The European Consumer Institution (BEUC), alongside Spanish consumer groups Asufin and CECU, has urged the European Union to take swift action against this deceptive practice.The organizations argue that current regulations are insufficient and call for updated legislation to ensure transparency in influencer marketing.
According to research conducted between March and September, 14 BEUC member organizations across 12 countries examined approximately 650 posts and videos featuring food and fast fashion products on TikTok, Instagram, YouTube, and Snapchat. the findings are stark: a full 67% of the content analyzed did not reveal a paid partnership with the brand being promoted.
“Influencer marketing is like the siren song,” stated a senior official. “It is too arduous to resist for children and adolescents. Whether it’s tons of cheap fast fashion clothes or discount codes for soft drinks, no one with a social media account can escape influencer marketing.”
Targeting Vulnerable Consumers
The concern is particularly acute regarding the promotion of unhealthy foods. With one in three children in europe classified as overweight or obese, consumer groups are advocating for a ban on influencers promoting such products to younger generations. They argue that these marketing tactics exploit emotional vulnerabilities and contribute to detrimental health outcomes.
The report highlights the elegant techniques used by influencers to subtly promote products, including leveraging emotions, creating engaging challenges, and utilizing temporary content that fosters a “fear of missing out.” Paid promotions are often disguised or omitted entirely, making it difficult for consumers to discern advertising from genuine recommendations.
“Our tests across Europe show that the creative techniques are endless,” a company release noted. “Paid promotion is often cryptic, if it is mentioned at all, so it’s time for transparency.”
Calls for Stronger Regulation
Consumer advocates emphasize that self-regulation by the industry has proven ineffective. They insist that obligation extends beyond influencers themselves to include the brands that hire them and the platforms that host the content.
“Consumer groups have repeatedly demonstrated that industry self-regulation does not protect children from the marketing of unhealthy foods,” one analyst noted. “The responsibility should not fall only on influencers, but also on the brands that hire them and on the platforms that offer them an prospect.”
Specifically, the organizations are calling for the EU to:
- Define influencer marketing within the Unfair Commercial Practices Directive.
- Establish a standardized EU-wide approach to disclosure requirements, with detailed rules for transparency.
- Presume someone is an influencer if they frequently promote products or services.
- Introduce joint liability for influencers, their agencies, and brands in cases of non-compliance with consumer regulations.
The groups also propose a ban on influencer marketing for products deemed risky to consumers, such as unhealthy foods for children and products that coudl lead to over-indebtedness, within the upcoming Digital Equity Law.
“The EU needs to ‘get its act together and have clear rules’ if it wants to protect consumers, especially ‘the little ones’,” a director stated. Greater regulation, with “better defined red lines,” is considered “urgent” by industry watchdogs, who stress the need to monitor compliance and prevent companies from operating with impunity.
