Influencer marketing has gotten more sophisticated and has been subject to more regulation by advertising watchdogs in recent years. Legal issues concerning influencers are growing. In the US, British courts have banned certain influencers from promoting certain products, and regulators in some countries haven’t taken much notice of this marketing strategy.
Because global influencer marketing shows the same characteristics as traditional forms of advertising, the rules and regulations governing the industry are also wide-ranging. However, new regulations are in place to hold marketers accountable for any misleading or deceptive content associated with influencer campaigns. In many countries, regulators are imposing higher penalties on advertisers who fail to disclose whether a piece of content is sponsored or on brands that make false claims. US-based “Teami” recently faced a $15m lawsuit for its influencer campaigns that did not fully disclose their paid partnerships and falsely claimed their products could cause rapid weight loss. The fine was later reduced but remains an example of how seriously regulators view this issue.
How do you distinguish an ad?
Of course, in different countries, regulations governing consumer law and local advertising vary. Many people run into difficulty when they don’t know what constitutes an influencer relationship, or how to be compliant with local laws. The truth is, there is no simple answer to this question. Before you push a new piece of content live, make sure to check your country’s code of practice.
However, one important point has remained consistent throughout the industry’s development: regulators will continue to crack down on influencer marketing. Though the disclosure of evidence has been the focus of most court cases for many years now and is sometimes seen as old news, there are new aspects of disclosure that occasionally surface.
Here’s what you need to know about influencer marketing in different global territories.