EU to crack down on influencer marketing

The European Union (EU) is implementing stricter regulations on influencer marketing and online practices to protect consumers, according to documents obtained by AFP. The EU plans to introduce a new law called the Digital Fairness Act, which will be unveiled by consumer protection chief Michael McGrath on Wednesday. This law aims to fill gaps in existing regulations covering data protection, artificial intelligence, and online content.

One of the key provisions of the new law is the requirement for influencers to clearly label paid promotions and commercial collaborations. Additionally, online sellers will be prohibited from using deceptive practices known as "dark patterns," which are designed to trick users into making choices that benefit the seller. The EU will also demand greater transparency over pricing and prevent online sellers from making false claims about product availability or popularity.

Companies and brands that work with influencers will face stricter rules regarding the promotion of their products. Content creators must label videos and posts as advertisements or commercial collaborations, and brands will be banned from encouraging children to buy products or persuade parents to make purchases in commercial content.

Video games will also be subject to new rules, including a ban on "pay-to-win" or "pay-to-progress" features for minors and the requirement to display the real-world value of in-game virtual currencies.

Users will have the right to disable certain features, such as autoplay and notifications, that are unrelated to their activity. The EU will also ensure that consumers are reminded when a free trial period ends, along with details about the end date and the cost to continue using the service. Additionally, the EU aims to ban a practice known as "drip pricing," where additional fees are hidden until the end of an online checkout process.

Instead, online sellers must disclose the maximum price a consumer may have to pay for a product or service.