EU wants brands liable for influencer ad disclosures, even without contracts

The European Union (EU) has proposed a new regulation that would hold brands liable for influencer ad disclosures, even if they do not have a contract with the influencer. This move aims to increase transparency in online advertising and protect consumers from misleading or deceptive ads. The proposal would require brands to ensure that influencers clearly label sponsored content, regardless of their contractual relationship.

This regulation matters for social commerce as it would impact the way brands and influencers collaborate on sponsored content. It could lead to increased scrutiny of influencer marketing practices and potentially change the way brands approach partnerships with social media influencers. As a result, social commerce platforms and brands may need to adapt their strategies to ensure compliance with the new regulations.