EU watchdog takes aim at 'influencer marketing'
Watching a favourite influencer chow down on the latest fast food fad or cocktail may feel like entertainment, but those posts are likely adverts in disguise, the EU said on Wednesday. The European Union is concerned about the growing impact of social media content creators -- on everything from physical and mental health, to politics and the spread of disinformation. With influencer marketing believed to have a reaped a global total of around 20 billion euros (HK$167.6 billion) last year, the European Commission launched a probe into the practice. The results were unequivocal: it found that 97 percent of influencers published posts with commercial content but only 20 percent "systematically disclosed" it as advertising. The study looked at 576 influencers in 22 member states as well as Iceland and Norway as part of a "sweep" to check their compliance with EU consumer law -- which compels creators to disclose all advertising activity. The platforms used by creators included Facebook, Instagram, Snapchat, TikTok, gamer streaming unit Twitch, X (formerly Twitter) and YouTube. "Influencers hold considerable sway over their followers, many of which are minors," the EU's justice commissioner, Didier Reynders, said in a statement. "I call on them to be much more transparent to their audience." Of the influencers screened, 119 promoted "unhealthy or hazardous activities" including junk food and alcohol, cosmetic treatments, gambling or crypto trading. The commission said 358 influencers face further action if they do not comply with the rules. (AFP)