Advice to the European Parliament on the impact of influencers on advertising and consumer protection
The fastgrowing market of online influencers comes with potential risks for consumers and creates several challenges for regulators: what should we do? Catalina Goanta of Utrecht University is one of the authors of a report on online influencers, requested by the European Parliament, in particular the committee on Internal Market and Consumer Protection. Dr. Goanta is an Associate Professor in Private Law and Technology and Principal Investigator of the ERC Starting Grant HUMANads.
The report provides information and analysis on the impact of influencers on advertising and consumer protection in the Internal Market, as well as policy recommendations to tackle market practices that harm consumers. The way forward, according to the researchers of this study is: relying on and expanding existing consumer protection rules, strengthening enforcement, guiding influencers, and empowering consumers.
Striking the right balance
Regulating influencers, for example requires striking the right balance between, on the one hand, enabling the Single Market for commercial activities but also for (online) social interaction and the creation of non-commercial content, and, on the other hand, protecting the interests of consumers. There is also a risk that regulation will run behind fast-paced technological and market developments.
Relying on and expanding existing consumer protection legislation is generally considered to be the right path to tackle influencer marketing. National courts and authorities already interpret and apply existing rules to influencer marketing practices. Recent changes to the Unfair commercial practices directive and the upcoming Digital Services Act will provide further clarity.