From influence to responsibility - Time to regulate influencer marketing

Influencers have become an essential part of modern marketing in the European Union and worldwide. So much that it is considered the most effective form of online marketing. However, influencer marketing is not without problems for consumers, especially the young ones. From hidden advertising to dropshipping, from the promotion of dangerous and risky financial products to the promotion of unhealthy food to children, harmful commercial practices posed by influencer marketing are numerous. European consumer law is only partly able to deal with these situations, and it is currently insufficiently and inconsistently enforced across EU Member States. In addition, EU law needs to be updated to provide harmonised solutions to unfair commercial practices present in all EU Member States, to clarify the rules and responsibilities of the different actors operating in the influencer marketing ’value chain’, and to ensure that consumers benefit from a fair and safe online environment.

Influencer marketing is now part of our digital environment and our daily life. This sector is growing exponentially and forecasts indicate that companies will invest even more in this advertising mode in the coming years. Influencer marketing comes with problematic practices for consumers which are similar across the EU and require an European response (e.g. recurrent hidden advertising). The growth and progressive professionalisation of the sector also leads to the emergence of new actors to consider (e.g. influencer agencies)  and who should also bear clear responsibilities for compliance with applicable law.

This report provides recommendations, both for a reform to further regulate influencer marketing and for better enforcement of existing EU legislation in this sector.