Is it time for sticter rules for UK influencers? The world of influencer marketing has exploded, becoming a cornerstone of modern advertising. But as its influence grows, so does the scrutiny.
Compliance is fast becoming the defining characteristic of professionalism in this dynamic field, with transparency and accountability now critical for commercial credibility. This shift is evident not just in the UK, but across the European Union, as regulatory reforms seek to align influencer practices with the long-established standards of traditional advertising.
The Evolving Regulatory Landscape
Recent years have seen a significant uptick in regulatory attention from bodies like the Advertising Standards Authority (ASA) and the Competition and Markets Authority (CMA) in the UK. Their focus? Undisclosed advertising,misleading claims and crucially, the protection of vulnerable audiences, especially minors.
The UK’s groundbreaking Online Safety Act and the EU’s comprehensive Digital Services Act have both reinforced the absolute requirement for clear labelling of any content that is paid for or incentivised on social media platforms. The days of subtle product placement without disclosure are rapidly fading.
Beyond general advertising, further regulation has specifically targeted environmental marketing. New EU rules now oblige brands and creators to substantiate any claims relating to sustainability, combating “greenwashing.” Moreover,the introduction of the Transparency and Targeting of Political Advertising regulation in the EU places additional demands on issue-based advertising, ensuring the public can easily identify promotional political content.
The Finfluencer Crackdown
The need for stricter compliance isn’t limited to fashion, beauty or lifestyle influencers. A recent international crackdown highlights how critical regulation is across all sectors, particularly where financial wellbeing is at stake.
Hundreds of social media posts and websites operated by financial influencers – or “finfluencers” – are being taken down following assertive action by the City regulator, the Financial Conduct Authority (FCA). This move was part of a global effort, which even led to three arrests in the UK.
While finfluencers can legitimately offer financial tips on social media, the line often blurs into illegal financial advice. This typically involves a lack of proper authorisation and a failure to explain crucial risks, all too often presented within promotional posts designed to showcase a lavish, aspirational lifestyle.
Regulators across the UK, Australia, Canada, Hong Kong, Italy and the United Arab Emirates were involved in this recent, intensive crackdown. In the UK alone, the FCA reported:
- 650 requests for content deletions from social media.
- 50 websites operated by unauthorised finfluencers taken down.
- Seven “cease and desist” letters issued.
- Four finfluencers invited for interview.
Stern Warning
Steve Smart, from the FCA, issued a stern warning: “Our message to finfluencers is loud and clear. They must act responsibly and only promote financial products where they are authorised to do so – or face the consequences.”
Beth Harris, head of financial crime at the FCA, elaborated on the common tactics: “The typical thing you may see is that somebody with a large social media presence will be on a beach in a sunny location with some super cars behind them,and wearing designer clothes and basically trying to sell a lifestyle. Often they’ll say they have super algorithms that means that they are a wonderful trader, so that then you can pay a fee, and then they will send you their trade.” She underscored the crucial point: “you must be authorised” to do this.
The FCA has called on social media platforms to act more swiftly on its takedown requests, noting that it has no direct power to enforce these actions. This plea comes as the Treasury Committee has written to Meta (owner of Facebook and Instagram), questioning why it has sometimes taken “up to six weeks to respond to a takedown request from the Financial Conduct Authority.” Meta acknowledged an “isolated incident” in late 2024 causing delays, which has since been rectified.
This case vividly demonstrates that the push for compliance isn’t just about general advertising ethics. It’s about protecting consumers from tangible harm across all sectors.
Raising Professional Standards
These regulatory changes are driving a fundamental shift in professional standards within the industry itself. Research from Kolsquare, for instance, identifies growing support for certification and training for influencers.
The UK’s Influencer Marketing Trade Body (IMTB) has been pivotal in developing structured educational pathways.These programmes align with continental frameworks like European AdEthics and codify essential industry standards around disclosure, ethical practices, and the responsibilities of both creators and the organisations that engage them.
The message is clear. Clear labelling of any form of compensation is now considered non-negotiable by industry experts. This shift in expectations has led organisations to place greater emphasis on robust education, updated contractual arrangements, and ongoing monitoring of influencer content.
The Future Direction of Influencer Marketing
With regulatory harmonisation firmly on the horizon, the influencer marketing sector is set to undergo further significant changes in the coming year. The obligations for disclosure, honesty, and integrity in advertising continue to climb as both authorities and the public demand greater accountability and transparency from online content creators.
It’s not just about avoiding penalties. It’s about building a credible, respected and truly professional industry that consumers can trust. The time for stricter rules, enforced by clear standards and robust education, appears to be now.
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