EU to crack down on influencer marketing

The European Union plans to implement stricter regulations on influencer marketing and online consumer protection practices. Influencers will be mandated to clearly label paid promotions and commercial collaborations, as per documents obtained by AFP. The EU intends to introduce the Digital Fairness Act, which will address gaps in existing laws covering data protection, artificial intelligence, and online content.

The new legislation aims to ban deceptive practices, known as "dark patterns," which manipulate users into making choices that benefit sellers. Additionally, online sellers will be required to provide greater transparency regarding pricing, ensuring false claims about product availability or popularity are not made. Influencers promoting brands' products must clearly label their content as advertisements or commercial collaborations.

Moreover, brands will be prohibited from persuading children or their parents to buy products through influencer endorsements. Video games will also be restricted from offering minors "pay-to-win" or "pay-to-progress" features, with virtual currencies displaying their real-world value. Users will have the right to disable autoplay and notifications unrelated to their activity, and platforms must remind consumers of trial periods' end dates and associated costs.

The EU also seeks to prevent "drip pricing" by requiring online sellers to disclose the maximum price a consumer may pay for a ticket, rather than hiding fees until the checkout process.