Influencer Marketing Under Scrutiny: Hidden Advertising Practices Exposed

Influencer marketing practices in the fast-fashion and food sectors are facing increased scrutiny from European regulators. According to a report by the European Consumer Organisation, also known as BEUC, issues such as a lack of transparency and undisclosed commercial partnerships have been highlighted.

Influencers have been observed promoting fast-fashion brands like Shein and Temu through 'hauls' or 'try-on hauls' and 'dupe' videos, while unhealthy food advertising is prevalent, with 67% of monitored posts promoting unhealthy food items failing to disclose brand partnerships.

BEUC's Director General, Agustin Reyna, stated that some of these practices may breach EU law regarding consumer protection. The organization is advocating for joint liability among influencers, their agencies, and brands in cases of consumer law breaches, and a prohibition on influencer marketing targeting children in risky sectors like unhealthy food.

Some European countries are already taking steps towards regulation, with France's National Assembly and Senate approving a proposal to ban influencer marketing for fast-fashion, and Norway banning promotions of unhealthy food and drinks to children.

The European Commission is expected to present the draft Digital Fairness Act next year, which aims to address unfair online practices and misleading influencer marketing.