EU proposes tougher influencer marketing rules, with new obligations for brands

The European Commission has proposed new influencer marketing rules that would make brands and agencies responsible for ensuring creators follow advertising requirements, including when creators are gifted products.

The measures are part of the proposed Digital Fairness Act, announced on Wednesday. It would replace the EU’s Unfair Commercial Practices Directive with a regulation that applies directly across all member states.

Influencers would have to label adverts as either “advertisement” or “commercial collaboration”. The label would need to appear at the start and remain visible throughout the content. On platforms covered by the Digital Services Act, they would also have to use the platform’s built-in disclosure tool.

Influencers are already required to disclose advertising under EU consumer law. What changes is the detail and who carries the duty. Brands and agencies would have to ensure through contracts that influencers comply or, without a contract, take other steps such as explaining the rules to creators and checking that adverts are labelled. They would remain responsible even when creators decide how to make the content.

The proposal would also bar influencers from directly urging children to buy products or to persuade their parents or other adults to buy them, from suggesting products are suitable for children when they are not, and from hiding that content is advertising. It singles out content made by or featuring minors.

Influencer marketing would also be banned for dangerous products and products that cannot legally be advertised under EU or national law.

One proposed change would ease the load on creators. Influencers promoting products sold by other businesses would no longer have to publish their business address.

Separately, the Commission wants stronger powers to investigate companies accused of widespread breaches of consumer protection law. It could fine them up to 6% of worldwide annual turnover. The powers would apply to companies that are not small or medium-sized enterprises, where a breach is likely to affect consumers in at least two-thirds of member states.

“Today we are proposing the most ambitious reform of EU consumer protection rules in a generation,” consumer protection commissioner Michael McGrath said.

The Commission estimates the wider reforms could save consumers up to €13.7 billion a year, while costing businesses around €678 million annually once overlapping requirements are taken into account.

The proposals must be approved by the European Parliament and EU member states before becoming law. Under the current draft, the new rules would apply 12 months after they enter into force.