European Commission to step up scrutiny of influencers’ business practices

BRUSSELS, Oct 17 (Reuters) – The European Commission said on Tuesday it would step up its scrutiny of the business practices of social media influencers, a market estimated to be worth some 20 billion euros ($21.16 billion), to protect customers.

The Commission will work in the coming weeks with national authorities to screen online posts to identify testimonials and product endorsements which misled customers, it said in a statement.

Influencers and celebrities with huge numbers of followers can earn large fees from companies to promote products on social media, and regulators around the world are trying to see how they can improve consumer protections.

In April, Australia said the majority of posts from Australian influencers may have violated advertising standards regarding disclosure of payments, while in February Mexico child advocates urged the government to enact rules to prevent influencers from targeting kids with misleading social media hype for junk food and other products.

“The business of influencers is thriving and a lot of consumers – often young people or even children – trust their recommendations. This business model, however, also comes with legal obligations,” said EU Commissioner Didier Reynders.

“Influencers, too, must follow fair commercial practices and their followers are entitled to transparent and reliable information.”

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