Navigating Influencer and Creator Marketing Regulations
A B2B Guide in the US, UK, and EU
Introduction
Influencer marketing, an exciting frontier for B2B engagement, is undergoing rapid evolution. As influencer and creator marketing gain momentum, understanding the intricacies of regulatory guidelines across geographies is moving up on b2b marketers’ to-do lists. No matter the potential rewards, compliance with regulations is non-negotiable.
This guide aims to help B2B influencers, marketing agencies, and brands navigate the complex landscape of influencer and creator marketing regulations in the US, UK, and the EU. We will not delve into the details of every rule (they tend to change too often!) Instead, our focus will be on identifying the key regulatory bodies in these regions and providing you with a roadmap to stay updated with their latest rulings and recommendations.
Regulatory Landscape in the United States
In the United States, the Federal Trade Commission (FTC) oversees advertising, including influencer marketing. Their guidelines are designed to ensure that advertising is not deceptive and that consumers understand when they’re viewing paid promotions.
1. Federal Trade Commission (FTC): The FTC provides guidelines on how endorsers, influencers, and brands should ensure transparency in their advertising. A key resource is the FTC’s guide, “Disclosures 101 for Social Media Influencers,” which outlines when and how influencers should disclose their relationships to brands.
Staying updated: Regularly visit the FTC’s website and follow their official social media accounts for updates on their guidelines. They offer loads of advice by industry, for advertising and marketing and for small businesses.
2. National Advertising Division (NAD): An investigative unit of the U.S. advertising industry’s system of self-regulation, the NAD monitors the marketplace for truth and accuracy in national advertisements.
Staying updated: Check out their 2022 annual report here. There’s also a podcast called the ‘Ad Watchers Podcast’ that provides listeners with all the in-the-weeds detail on advertising law.
3. Better Business Bureau (BBB) Programs: The Better Business Bureau is a private, nonprofit organization whose self-described mission is to focus on advancing marketplace trust. They provide business accreditation for companies meeting their standards and also have specific advertising review services. The BBB’s National Programs (formerly Council of Better Business Bureaus) provide various initiatives, such as the National Advertising Division (NAD) and the Children’s Advertising Review Unit (CARU). While these initiatives mostly focus on B2C, their principles of truth in advertising and ethical business practices are equally applicable to B2B marketing.
Staying updated: Visit the BBB’s National Programs website for updates on self-regulatory decisions and guidelines. They’ve also got several podcasts you can listen to for topic deep-dives, and a big annual conference in September.
Regulatory Landscape in the United Kingdom
In the UK, the ASA and CAP govern advertising content. Their guidelines also cover influencer marketing. More detail below:
1. Advertising Standards Authority (ASA) and Committees of Advertising Practice (CAP): The ASA is the independent regulator of advertising across all media, including online and influencer marketing. The CAP, its sister body, writes and maintains the UK Advertising Codes, which includes detailed guidelines on how influencer marketing should be conducted in a fair, honest, and transparent way.
Staying updated: The ASA has published some good resources like the Influencer’s Cheat Sheet to Declaring Ads on Social Media and the influencers’ guide to making clear that ads are ads. There’s also a special addition for ‘Fin-fluencers’
2. Competition and Markets Authority (CMA): The CMA works to ensure that businesses compete fairly and consumers aren’t misled by unfair trading practices, which includes influencer marketing.
Staying updated: The easiest way is probably to subscribe to get emails from the Competition and Markets Authority. (You can choose how often you receive them)
3. Incorporated Society of British Advertisers (ISBA): The ISBA represents the leading UK advertisers. They provide their members with industry insights and guidance on best practices, including in the field of influencer marketing.
Staying updated: Follow ISBA on social media and consider becoming a member if not already. They also have recently updated their Influencer Marketing Code of Conduct as of June 2023, which serves as the best practice guide for influencer marketing in the UK.
4. Influencer Marketing Trade Body (IMTB): A relatively new organization, the IMTB represents the interests of businesses involved in influencer marketing. Their aim is to establish standards, share best practices, and provide guidance for the influencer marketing industry. They are also a member of CAP (see above), and have joined ISBA in signing up to the Influencer Marketing Code of Conduct.
Staying updated: Visit the IMTB’s website and consider becoming a member to help shape the future of influencer marketing.
Regulatory Landscape in the European Union
The regulatory landscape for influencer marketing in the EU is complex due to the presence of both EU-wide regulations and country-specific laws. The General Data Protection Regulation (GDPR) and the Audiovisual Media Services Directive (AVMSD) are particularly relevant for data privacy and security as well as how audiovisual media is regulated across member states.
As far as transparency requirements under consumer law apply to influencers, the Unfair Commercial Practices Directive (UCPD) in particular provides guidance on practices that negatively impact consumer protection rules. The Consumer Rights Directive (CRD) is the legislation that gives consumers strong rights across all EU states and Digital Services Act (DSA) which is broad-reaching, but aims to put a framework in place for online intermediary services to act fairly and safely in the digital environment.
1. The European Institute for Advertising Law (EIAL): The EIAL provides information and education about advertising law and regulation. They help advertisers, agencies, and media companies navigate the complex landscape of EU-wide and country-specific advertising regulations.
Staying updated: EIAL offers several resources to stay informed about EU advertising law, including many research publications.
2. Local regulatory bodies: Each EU member state has its own advertising self-regulatory organization (SRO) that issues and enforces local advertising codes. In Germany, it’s the German Advertising Federation (ZAW); in France, it’s the Advertising Ethics Authority (ARPP); in Italy, it’s the Institute of Advertising Self-Discipline (IAP), and so on.
Staying updated: Visit the respective SRO’s website to understand their guidelines and always check with local marketers and legal advisories for anything you are unsure about.
Conclusion
The world of influencer and creator marketing can seem like a minefield of regulations and acronyms. And we’re not here to give legal advice, but simply put, influencer marketing advertisements and endorsements need to be made clear to consumers and business decision makers alike.
With the right knowledge and resources, B2B influencers and businesses can confidently navigate this landscape. We hope the above links may serve as helpful and handy reference to get started, and do remember that this article was last updated July 2023. While every effort is made to ensure the information is correct at the time of publication, regulatory landscapes can and do change!