WATCHING a favourite influencer chow down on the latest fast food fad or cocktail may feel like entertainment, but those posts are likely adverts in disguise, the European Union (EU) said on Wednesday (Feb 14).

The EU is concerned about the growing impact of social media content creators – on everything from physical and mental health, to politics and the spread of disinformation.

With influencer marketing believed to have a reaped a global total of around 20 billion euros (S$29 billion) last year, the European Commission launched a probe into the practice.

The results were unequivocal: it found that 97 per cent of influencers published posts with commercial content, but only 20 per cent “systematically disclosed” it as advertising.

The study looked at 576 influencers in 22 member states as well as Iceland and Norway as part of a “sweep” to check their compliance with EU consumer law – which compels creators to disclose all advertising activity.

The platforms used by creators included Facebook, Instagram, Snapchat, TikTok, gamer streaming unit Twitch, X (formerly Twitter) and YouTube.

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“Influencers hold considerable sway over their followers, many of which are minors,” the EU’s justice commissioner, Didier Reynders, said.

“I call on them to be much more transparent to their audience.”

Of the influencers screened, 119 promoted “unhealthy or hazardous activities” including junk food and alcohol, cosmetic treatments, gambling or crypto trading.

The commission said 358 influencers face further action if they do not comply with the rules.

Need for ‘ethical code’?

The 27-nation EU is weighing what action to take towards influencers.

A discussion paper seen by AFP recommended that member states “consider developing an ethical code or ethical label for influencers”.

The paper dated Jan 31 said influencers can have a “positive impact” on young people – for instance creating a sense of community for people underrepresented in traditional media – but it also warned of potential “harmful” effects.

“The mis and disinformation shared by some influencers can also have a negative impact at the societal level,” it said.

The issue is in the spotlight after a scandal last year involving Italy’s Instagram star Chiara Ferragni, who is being investigated over a charity cake deal in which she wrongly suggested that sale proceeds would help children with bone cancer.

Italy responded with plans to increase supervision of influencers.

France last year passed a law targeting influencers, in a bid to prevent creators selling questionable products or promoting risky trends.

The EU has had the digital world increasingly in its sights in recent years.

The bloc’s milestone Digital Services Act (DSA) demands companies do more to protect users from hate speech and disinformation as well as consumers shopping online.

While aimed largely at Big Tech, the DSA will also affect how influencers use platforms to share their content as it demands more transparency over advertising.

All companies must comply with the DSA from Saturday. AFP