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So far this year, according to the Ad Standards Case Reports, 6 advertisers have been the subject of complaints about breaches of the AANA - Australian Association of National Advertisers Code of Ethics when it comes to distinguishable advertising, with one complaint involving 8 different posts. With 3 of those complaints upheld, 2 remain listed as not modified or discontinued on the Ad Standards website. Last month, the ACCC released its 2024–25 Compliance and Enforcement Policy and Priorities, noting that consumer and fair-trading issues in the digital economy, particularly misleading or deceptive advertising within influencer marketing, online reviews, in-app purchases, and price comparison websites, remain a top priority for the regulator. The ACCC also noted in their findings of their internet sweep of testimonials and endorsements by influencers, released in December 2023, that the ACCC will monitor adverse findings made by Ad Standards to assess whether they involve ACL concerns, and take enforcement action where appropriate. With 17 case reports listed on the Ad Standards website with "Upheld - Not Modified or Discontinued" as their determination in relation to the distinguishable advertising obligations under the AANA Code of Ethics, watch this space to see what action, if any, the ACCC takes in the coming period in relation to these ads, determined by the Ad Standards Community Panel to be non-compliant with the relevant self-regulatory code in Australia. The products advertised in these ads span clothing, food and beverage, health products, retail and information technology. Whilst the ACCC of course cannot pursue all matters that come to their attention, and some advertising of certain products may fall into the jurisdiction of other regulators, the ACCC does have a range of compliance and enforcement tools at their disposal to encourage compliance with the law, and focus on circumstances likely to impact consumers experiencing vulnerability, harm the competitive process or result in widespread consumer or small business detriment. What do you think? Putting aside the fact that proper ad disclosure builds confidence and trust in influencer marketing, and is therefore important for the industry, in your view, is hidden advertising in influencer posts advertising the abovementioned types of products likely to impact consumers experiencing vulnerability, harm the competitive process or result in widespread consumer or small business detriment, and therefore worthy of an allocation of regulatory resources to stamp out? #influencermarketing #accc #adstandards #aana #influencers #digitalmarketing #policy #priorities #opinion

Ah the price to pay to be an early bird! French regulation of (online) influencers is changing (yet again...) to align with the EU DSA... Read all about the expected changes and the impact on the influencer ecosystem in our K&L Gates Fashion Law Watch blog post with Kenza Berrada #Influencer #Update #Regulation #eCommerce #Online #DigitalServicesAct #DSA

"Pioneering Influencer Regulations: France's Influencers Act 2023 and the Path to Accountability" France has taken a pioneering step in regulating digital influencers through the Influencers Act (Act no. 2023-451), effective since June 9, 2023. This legislation aims to address concerns about the proliferation of paid promotions for questionable products and services. Key provisions of the Influencers Act include a general ban on specific types of content, mandatory labeling of promotional posts, disclosure of edited images, transparency in drop-shipping practices, and requirements for influencers operating outside the European Economic Area targeting the French audience. These regulations also place obligations on digital platforms used by influencers, emphasizing the swift removal of illegal content. Brands and influencers are required to establish written contracts with clear provisions and share liability for third-party damages. Enforcement is conducted by a dedicated team responsible for monitoring social networks and responding to complaints, with audits carried out by the Directorate General for Consumer Affairs, Competition, and Fraud Prevention (DGCCRF). The ultimate goal of the Influencers Act is to foster transparency and accountability in the influencer industry, benefiting both consumers and the sector as a whole. Brands and influencers must adapt to this new framework to ensure effective compliance with the regulations. France becomes the first EU country to implement such comprehensive regulations on commercial influence. SADER Legal (since 1863) FASHION LAW ARABIA #InfluencerRegulations #InfluencersAct. #ConsumerProtection #InfluencerTransparency #DigitalMarketing #ResponsibleInfluencing #FranceInfluencerLaw #CommercialInfluence #InfluencerCompliance #DigitalEthics #SocialMediaRegulation #BrandAccountability #ContentTransparency #InfluencerIndustry #ConsumerRights #MarketingStandards #DGCCRF #InfluencerObligations #LegalCompliance #TransparentMarketing

Mastering the Art of Influencer Marketing Compliance Across Borders I've put together a whistle-stop tour of marketing laws across Italy, Spain, the UK, and the USA. Brace yourselves – more laws are on the way, and things are about to get complex, quickly." Italy: The Italian Communications Authority (AGCOM) established guidelines for influencer marketing to ensure transparency and fairness. Influencers must clearly disclose any commercial relationships or endorsements to avoid misleading their audience, using explicit tags or hashtags such as #ad or #sponsored. The focus is on protecting consumers from deceptive practices and ensuring that advertisements are easily identifiable as such. Spain: Spain's recent Draft Royal Decree introduces specific obligations for "users of special relevance," targeting influencers with significant income and reach. This law mandates clear labeling of brand collaborations and restricts advertising for certain products, including alcohol and tobacco, to protect young audiences. The Spanish approach highlights the importance of transparency in influencer marketing and consumer protection, especially for minors. United States (FTC): The FTC provides guidelines for endorsements and testimonials, emphasizing the need for honesty and transparency in influencer marketing. Influencers and brands must disclose their relationships in a clear and conspicuous manner, ensuring that disclosures are noticeable and understandable to consumers. The FTC's guidelines are designed to prevent deceptive practices and ensure that consumers can easily recognize sponsored content. United Kingdom (ASA): The ASA enforces the CAP Code, which sets standards for non-broadcast advertising, including influencer marketing. The Code requires that sponsored content is clearly identifiable, using clear and unambiguous language to indicate any commercial relationships. The ASA's approach focuses on safeguarding consumers from misleading advertising and maintaining the integrity of marketing communications. Case for Caution in Intra-Jurisdictional Approaches: Marketers must be vigilant in understanding and adhering to the specific regulations of each jurisdiction in which they operate. Failure to comply with local regulations can result in legal consequences, financial penalties, and damage to brand reputation. The diverse and evolving nature of these regulations requires marketers to stay informed and adaptable, often necessitating legal consultation or dedicated compliance teams. #MarketingLaws #GlobalCompliance #InfluencerMarketing #DigitalAdvertising #RegulatoryUpdate #CrossBorderMarketing

Do you know your country's laws and regulations for #InfluencerMarketing ❓ Despite the growing importance and professionalisation of our industry, and many KOLs working on an international level, there are huge differences in each EU country's individual legislation. We took the time to shed some light on this jungle of clauses and paragraphs and compared the different standards on a European level. With the help of subject matter experts such as Quentin Bordage 🇫🇷 , Jeanette Okwu 🇩🇪, Scott Guthrie 🇬🇧 and Sandra Cid Dopazo 🇪🇸 , we also looked at the actual execution of laws attempting to protect consumers in different regions. Key take aways include: 💡 In most countries, influencer marketing is regulated under existing advertising laws 💡 There is a EU-wide consensus that commercial influencer content should be labeled clearly and immediately 💡 The new European Commission Digital Services Act (DSA) will impose greater responsibility on influencers to ensure that content is not illegal, misleading or inappropriate. Read the full piece here 👉 https://lnkd.in/grRttFme At Kolsquare, we believe in #ResponsibleInfluence and using the power of #SocialMedia to drive positive change 🙏 We are thus generally in favour of an overarching legislation if it guarantees transparency and a pedagogic approach of all actors involved, as well as the effective repression of excesses. What's your take on the matter? #medialaw #influencermarketing #advertisingandmarketing #europeanlaw

Last August 21, PROFECO ("Procuraduría Federal del Consumidor" for its acronym in Spanish) published the "Advertising Guide for Influencers" in a very innovative and visual format, which regulates the content of advertisement that Influencers publish in their social networks. In paid advertisement, Influencers must comply with Article 32 of the Federal Consumer Protection Law, which establishes that all the information directed to consumers must be "clear, truthful, verifiable and free of other forms that may mislead or confuse consumers", so when uploading paid advertisement or collaboration in social or digital media, they are responsible for complying with this article. Influencers must pay special attention to ensure that the agreements they execute with the advertisers include clauses that release them from any liability for the content of the advertisement of products/services they are doing on their behalf. While it is true that this Guide establishes important principles to be followed, it does not establish sanctions. We consider that the Guide is a positive milestone, however, it is necessary to implement additional progress to create legal frameworks that provide greater transparency and clarity to all parties involved: advertiser, influencer and final consumer. Contact us for more information. www.olivares.mx #OLIVARES #lawfirm #mexico #advertising #influencersmexico #regulations

Creators continue to come under fire for compliance concerns. In the US, the Federal Trade Commission (FTC) has sent warning letters to a dozen social media influencers advising them that their disclosures of material connections were inadequate. In Australia, the Australian Competitor & Consumer Commission (ACCC) has received reports from consumers about 118 social media influencers publishing content with misleading advertising. One thing is clear: consumers are demanding higher standards of transparency from the creators whose content they engage with. Acting Chair of the ACCC Catriona Lowe said: “Influencers often cultivate an image of themselves as being relatable and genuine, which can create an element of trust with their followers when it comes to recommendations.” With the creator economy expected to grow to $480B by 2027, transparency around intentions and affiliations is vital in ensuring consumers can trust the information they find online. Already, the FTC put letter recipients on notice that continued failure to follow the Endorsement Guides could subject the entities and individuals to civil penalties of up to $50,120 per violation. Going forward, the ACCC has pledged to develop more thorough guidelines to clue in creators on consumers on best practices, before going full steam ahead with a renewed focus on enforcement. I’d love to hear your views on this. Brands: will you be more vigilant about working with compliant creators? Creators: what are you doing to make your affiliations more transparent? Consumers: what gives you the confidence to engage with affiliated content? #compliance #influencermarketing #contentcreation

FTC, IP, and More: The Legal ABCs of Influencer Marketing Are you legally savvy when it comes to influencer partnerships? 🧐⚖️ In the intricate dance of influencer marketing, it’s crucial to stay on the right side of the law. Here are 5 legal must-knows to keep your influencer-brand partnerships smooth and compliant: 1. Contracts are Key: Always have a clear, detailed contract. It should cover deliverables, deadlines, and rights usage. 2. Disclosure is a Must: Ensure influencers disclose partnerships to comply with FTC guidelines. 3. Intellectual Property Rights: Be clear about who owns the content and how it can be used. 4. Exclusivity Clauses: Consider whether you need an exclusivity agreement to prevent conflict of interest. 5. Payment Terms: Define clear payment terms to avoid any future disputes. Staying informed about these legal aspects not only protects your brand but also builds trust with your influencers. Let’s keep it legal and keep it fun! #InfluencerMarketing #LegalCompliance #FTC #BestPractices #IPRights #PaymentTerms #BrandProtection #InfluencerPartnerships

🚨 Attention retail marketers // ACCC set sights on misleading influencer advertising + reviews 🚨 The Australian Competition and Consumer Commission (ACCC) has issued an update on its ongoing work to scrutinise misleading online reviews and influencer endorsements. Aimed at safeguarding consumers from deceptive marketing tactics, the ACCC conducted internet sweeps of Instagram, TikTock, YouTube, Facebook and Snapchat influencers across categories including fashion, beauty, food and beverage, health and wellbeing and travel and lifestyle, underscore the importance of transparency and truthfulness in online promotions. Many of the influencers reviewed failed to make adequate disclosures where they were receiving payment, gifts or other incentives to promote brands, products or services,” said Annika Childs, Commercial lawyer. Common issues identified include: - Lack of disclosure of brand relationships - Using vague or confusing language to disclose advertising (e.g. 'sp.' or 'spon.' instead of 'sponsored') - Using formatting to obscure advertising disclosure A separate ACCC sweep of online reviews found potentially fake or misleading online reviews for household appliances, beauty products and home improvement, were relatively common with 37% of those businesses reviewed engaging in concerning conduct. The implications for businesses is clear, warns Annika: “Companies and influencers must reassess their marketing strategies to align with legal and ethical standards. Influencers and brands may break the law if they do not take reasonable steps to ensure consumers are not misled to believe that sponsored posts are genuine. Failure to do so may result in regulatory action and damage to brand reputation.” 💡 Ensure your online marketing activities don’t overstep the law – Reach out to our Commercial Team for help to review and ensure compliance with relevant consumer law guidelines via https://lnkd.in/g733GvFe #InfluencerMarketing #DigitalMarketing #ConsumerLaw #ConsumerProtection #OnlineAdvertising #retailmarketing

📌 #Influence and content creation have revolutionized the approach to marketing. In the absence of specific regulations applicable to this new form of advertising, influence marketing has been - until now - solely governed by existing law, in particular advertising law and consumer law. However, in view of the action of a minority of (major) influencers, it quickly became apparent that existing law was insufficient to deter certain prohibited practices. It is in this context that the tailor-made law of 9 June 2023 was passed, which aims to regulate commercial influence, and combat influencers wrongdoings on social networks. Although not revolutionary, this law sets a unique legal framework for influence marketing and aims to combat certain prohibited practices and behaviors, in order to protect both influencers and at-risk consumers on social networks. What does this law provide for? To find out more, read our article with Eloïse Patocki-Tomas ⬇