Who pays for the hype? When advertising on social media is disguised as "everyday life"
Who pays for the hype? When advertising on social media is disguised as "everyday life"
Influencer marketing between advertising, responsibility and legal grey areas
Whether fashion hauls, product "dupes" or viral food challenges – social networks are increasingly flooded with seemingly private recommendations. European consumer advocates are now sounding the alarm: Behind much of this content is paid advertising, without this being clearly recognizable to users. The debate about transparency, responsibility and regulation of influencer marketing is thus noticeably gaining momentum.
Fast fashion and the normalization of overconsumption
On platforms such as Instagram and TikTok, influencers regularly present large quantities of cheap clothing – often from ultra-fast fashion providers such as Shein or Temu. In so-called "hauls" or "try-on hauls", it is demonstrated how much goods can be bought for little money. These formats are supplemented by "dupe videos" in which cheap imitations are compared with high-priced branded goods.
Consumer advocates criticize that such content specifically addresses younger target groups and promotes a culture of permanent buying – often without any indication that it is paid or incentivized advertising.
When junk food becomes a trend
Influencer marketing has also long been established in the food and beverage sector. Highly processed or sugar-rich products are particularly frequently advertised. Common formats include discount codes, taste tests, challenges, dance videos or humorous skits.
A much-discussed example comes from Portugal, where McDonald's cooperated with a well-known streamer and implemented a branded world of experience within Minecraft – including brand integration.
Hidden advertising and legal loopholes
A recent report by the European Consumer Organisation (BEUC) warns that users are often unable to recognise paid content as such. According to the organization, the boundaries between personal recommendation and advertising are becoming increasingly blurred – a problem for consumer protection.
BEUC Director-General Agustín Reyna told Euronews that in several cases there could be a breach of EU law if influencers are paid to advertise without openly labelling it. At the same time, he admitted that existing EU legislation has so far insufficiently reflected the complex relationships between influencers, agencies, brands and platforms.
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The BEUC study shows clear transparency deficits. Around 67% of the analyzed influencer posts that advertised unhealthy foods did not contain any reference to a commercial partnership – neither in terms of payment nor free product mailings.
According to consumer advocates, this lack of transparency particularly affects children and young people, who are less critical of advertising.
Calls for clearer rules and joint liability
In response, the BEUC calls for joint legal responsibility of influencers, agencies and advertising companies as soon as consumer rights are violated. In addition, the organization advocates stricter restrictions – up to and including bans – on influencer marketing in sensitive areas such as unhealthy eating if content is specifically aimed at minors.
National measures and European plans
Some European countries have already forged ahead. France has adopted new rules restricting influencer advertising related to fast fashion. Norway, on the other hand, completely prohibits influencers from advertising unhealthy food and beverages to children.
At the EU level, the European Commission is currently working on a draft for a so-called Digital Fairness Act, which is expected to be presented next year. The aim is to regulate unfair online practices, manipulative designs and misleading influencer marketing more strongly throughout Europe.
In the future, advertising should have to be labelled in all posts, websites and social media, this is the plan of the European Commission
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In the future, advertising should have to be labelled in all posts, websites and social media, this is the plan of the European Commission
CLICK ADVERTISING
All-round video and radio advertising
Professional video production, catchy radio jingles and multimedia advertising solutions will help your brand stand out from the crowd. We create compelling content that
grabs attention and drives measurable results across all platforms.
Author: Tom Weyermann for MFRadio.de
Source: euronews
Note: Organizations or examples mentioned are for journalistic classification. There is no commercial cooperation.
