European Consumer Advocates Declare War on Influencers

From chemically-laden cheap fashion to sugar bombs to risky financial products - influencers sell products online without clear advertising labeling, without risk warnings, and thus exploit their close relationship with millions of followers, criticized the Chamber of Labor Vienna on Wednesday. The organization, along with 13 other consumer protection companies from twelve countries, has investigated influencer marketing on TikTok, Instagram, YouTube, and Snapchat.

Legal Situation and Platform Guidelines Are Not Sufficient

From March to September, influencers on digital platforms were scrutinized. The focus was on three areas: cheap goods from third countries, food, and finance. The report "Influencer Marketing Unboxed" was created by BEUC, the EU umbrella organization of more than 40 European consumer protection organizations. It showed that self-regulation would not work. Platform guidelines and industry agreements fall short, laws are fragmented, responsibilities unclear, and law enforcement weak, said the Chamber of Labor Vienna, also with regard to the social media ban for under-16s in Australia.

Dangerous Advertising for Shein, Temu, and Co.

Influencers would promote the culture of overconsumption in fashion, criticized the organizations. The textile industry causes around ten percent of global CO₂ emissions. Every second, a truckload of clothing is destroyed. Platforms like the cheap providers Shein and Temu would further fuel overproduction in the fashion sector - with risks for the environment and consumers. The mass purchases operated by influencers (so-called hauls) are sold as must-haves. Documented is, for example, a Norwegian influencer with a shopping value of 35,000 euros. Discount codes, free products, and commissions would be concealed. Instead of advertising, "personal recommendation" is played with.

Advertising for an Unhealthy Lifestyle

Advertising for fast food is also not properly labeled - especially in short videos and 24-hour posts. Junk food is portrayed as a reward or self-care. Collaborations with games and stars normalize unhealthy food as part of childhood. False claims are also made about supplements. For muscle and beauty pills, nine out of ten statements are factually incorrect. Meanwhile, every third child in Europe lives with overweight or obesity. The WHO also blames omnipresent marketing for this, according to the AK Vienna.

Questionable Tips from Financial Influencers

A recent AK analysis of Austrian so-called "finfluencers" also shows massive problems. Content sold as "financial education" is often questionable. Savings accounts are generally criticized ("You lose money!"), securities are pushed with exaggerated returns - without risk warnings. "Best online savings account," "best broker" - whether it's a factual recommendation or commission-driven information, the commissions for it often remain in the dark, with hints at most in the fine print. Some appear as "business consultants," "advertising agencies," or even "bed and breakfasts" - a license for financial advice is often missing.

AK: More Protective Measures for Minors Needed

The AK therefore calls for urgent protection for minors. Unrealistic return promises without risk information and unhealthy dietary recommendations must be legally banned across the EU. There must also be an end to covert advertising. A clear, EU-wide uniform labeling of who is paid for what is essential. Violations must be effectively punished.

Qualifications must also be disclosed and commissions clearly indicated. "Anyone giving dietary or financial tips needs demonstrable competence and must show their legal status," according to the AK. Platforms must also be held accountable. Clear rules, fair distribution of responsibility between influencers, agencies, and platforms are needed at the EU level.

(APA/Red)

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