France Is Cracking Down on the Influencer Industry: Why It’s About Time
In recent years, the influencer industry in France has been marred by high-profile scandals, scams, and controversies. From promoting questionable products to misleading followers, these influencers have become a cause for concern for both regulators and consumers alike. However, a new legislation proposed by French MPs Stéphane Vojetta and Arthur Delaporte aims to change this status quo. The bill, adopted by the lower chamber of France’s Assemblée Nationale in late March, sets out a regulatory framework around what influencers can advertise to their followers. In this article, we delve deeper into what the legislation entails and why it’s much-needed for the influencer industry.
The Scope of the Problem
The influencer marketing industry is growing rapidly, set to become a $69.92 billion dollar industry by 2029, according to Data Bridge Market Research. However, this growth has been accompanied by a lack of uniform regulation around the world. In France, this lack of regulation has led to a surge in scams, with influencers promoting everything from Botox fillers to gambling. For instance, Nabilla Benattia-Vergara was recently handed a €20,000 fine for promoting Bitcoin to millions of Snapchat followers without disclosing that she was being paid to do so. Over 100 alleged victims also came forward earlier this year, accusing French social media influencers of deliberately leading them to lose money on trading and NFT platforms.
The “Wild West” of France’s Influencer Industry
In France, the influencer marketing industry is worth an estimated hundreds of millions of euros. However, it has never been formally recognized by the law and is instead governed by laws designed for traditional marketing. As a result, there have been numerous cases of influencers flouting regulations, including the requirement to specify in their post’s description if they are paid to promote a brand or product. Under the new law, content creators would be required to include a disclaimer indicating that a post is sponsored as a banner across photos and videos, rather than just in the description or as a hashtag.
What the Legislation Entails
The new legislation proposed by Vojetta and Delaporte will ban influencers from promoting cosmetic surgery, financial products and services such as cryptocurrencies, and counterfeit products. It will also force creators to disclose when they place filters on photos and videos that are ads. For promotions that involve gambling or betting, posters will be required to include an informational banner about the risks. While French influencers will still be required to specify if they are paid to promote a product, under the new law, content creators would be required to include a disclaimer indicating that the post is sponsored as a banner across photos and videos, rather than just in the description or as a hashtag.
Related Facts
The U.S. Securities and Exchange Commission charged celebrities like actress Lindsay Lohan and social media influencer Jake Paul for illegally promoting cryptocurrencies.
In the U.K., Parliament launched an investigation into influencer culture that assessed, in part, the absence of regulation around product promotions.
Key Takeaway
The new legislation proposed by French MPs Stéphane Vojetta and Arthur Delaporte sets out the first-ever regulatory framework for the influencer industry in Europe. While France is the first country to legally define what an influencer is, other countries are likely to follow suit. As the influencer industry continues to grow exponentially, it’s high time that regulators take action to protect consumers from scams, misleading promotions, and false advertising.
Conclusion
The influencer industry undoubtedly has enormous potential for both brands and creators. However, it also presents a unique set of challenges that can lead to scams, controversies, and unethical practices. While the new legislation proposed by French MPs Stéphane Vojetta and Arthur Delaporte won’t solve all of the industry’s problems, it’s a step in the right direction. As the industry continues to evolve, it’s crucial that regulators provide a clear and uniform framework for influencers that protects both brands and consumers.
