Issue link: https://maltatoday.uberflip.com/i/1517228
16 NEWS maltatoday | SUNDAY • 10 MARCH 2024 SOCIAL media has reshaped many aspects of our life, least not the way advertisers promote their products. Widely regarded as an unregu- lated sector, the European Com- mission has launched a 'Fitness Check' to determine whether the existing EU consumer law is ade- quate for ensuring a high level of consumer protection in the digi- tal environment. The outcome of a sweep con- ducted by the European Com- mission in conjunction with national protection authorities, which examined social media in- fluencers' disclosure of commer- cial content, will be incorporated into the Digital Fairness Fitness Check. The Commission aims to complete the fitness check by the first half of 2024. Italian influencer Chiara Fer- ragni was thrown in the spotlight last year over a false claim involv- ing a charitable campaign that earned her a €1 million fine for "incorrect commercial practic- es". She was also forced to issue an apology on social media. The influencer teamed up with company Balocco to launch a pandoro with the Ferragni logo, priced at €9, triple its usual price. The box of the product claimed that their sale would translate into a donation to the Regina Margherita paediatric hospital in Turin, but in reality, the do- nation, of €50,000, had already been made by Balocco alone be- fore they even went on sale, and Ferragni pocketed €1 million with that campaign. Ferragni apologised for having made "a communication error" regarding the pandoro and an- nounced that she would donate the million euros she had taken to the Turin hospital. Speaking to MaltaToday, Fran- cette Camilleri from the Malta Competition and Consumer Af- fairs Authority (MCCAA) said from a consumer legislation per- spective, influencers who gener- ate income from the social media content they create, are regu- lated by the Unfair Commercial Practices Regulations under Part VIII of the Consumer Affairs Act. These Regulations prohibit commercial practices that mis- lead consumers or are likely to distort the economic behaviour of average consumers. "Since influencers' endorse- ments often get mixed with everyday content, unlike tradi- tional advertising, consumers are not always aware that the influencers' content can be com- mercial," she said. "By not dis- closing the commercial nature of their posts and stories, influ- encers may give the impression that they are normal consumers using a product when in reality they are acting in the name, or on behalf of a trader. This is prohib- ited by the Unfair Commercial Practices Directive. Hence, the legal requirement on influencers to clearly disclose commercial content." What should influencers be doing when promoting products? According to Camilleri, when promoting a product on their so- cial media pages, disclosures by influencers must be clear, visible, prominent and appropriate for the social media platform used. Disclosures must be used at the start of the post/story and should not require extra clicks to be vis- ible. The disclosures that should be used are #advert or #advertis- ing or the disclosures available on the social media platforms such as 'paid partnership'. "Hashtags such as #gifted, #part- ner, #ambassador are considered unclear and are not acceptable alternatives. Tagging the brand only without a clear disclosure of the adverterial content is also not acceptable," she said. What do the influencers think? MaltaToday reached out to a few Maltese influencers to gauge their views on the new regulation. Fashion content creator Mal- com Gauci said he was aware of the new regulation, voicing his agreement with the new rules. "Transparency is key, and this regulation aligns with our com- mitment to providing clear and understandable information," he said. The sentiment was shared by singer and influencer Maxine Pace, who said she agrees with the regulation. "I try to abide by the rules as much as I can," she said. Influencer Stephanie Agius said regulation helps ensure transpar- ency and fairness in influencer marketing. "While regulations may pose some challenges, I believe they encourage creativity within eth- ical boundaries, ultimately en- hancing trust with my audience," she said. Agius also insisted that balanc- ing compliance and authenticity is key. "I maintain authenticity by staying true to my values and interests while adhering to regu- lations through clear disclosure and honest communication." Malcom Gauci said despite the regulation, the content he shares reflects who he is, whether it is sponsored or not. "My postings are a genuine reflection of my opinions, and sponsorship doesn't alter that authenticity. I believe that my audience values my perspective irrespective of the promotional nature of some content. Striving for balance, I consciously ensure a mix of sponsored and non-sponsored content to maintain authenticity and provide a well-rounded experience for my followers. Ul- timately, the essence of my con- tent lies in sincerity, regardless of any sponsorship involvement," he said. Both Gauci and Agius said they have not noticed any considera- ble changes in the willingness of brands to collaborate with them. "It is also my responsibility as a content creator to inform the brands I collaborate with that our partnership will be explicit- ly disclosed on social platforms," Gauci said. Influencer accountability: The new rules regulating social media marketing Chiara Ferragni, an Italian influencer, ended up in hot water over misleading claims when advertising Balocco's special Christmas Pandoro From left: Stephanie Agius, Malcolm Gauci and Maxine Pace