SOLIVE - NEWS - October 2024

Law on influencer marketing: one and a half years later, what impact for influencers and influence agencies?

Law on influencer marketing: one and a half years later, what impact for influencers and influence agencies?

On June 9, 2023, France reached a significant milestone in social media regulation with the enactment of Law No. 2023-451. This law aims to regulate the commercial practices of influencers. Seen as pioneering legislation, this text addresses growing concerns about social media, particularly regarding hidden advertising, potentially dangerous products, and consumer protection. Now, a year and a half after its enactment, what is the impact of this law on content creators, influencer agencies, brands, and social media users in general? This article explores the positive effects, the challenges encountered, and the evolution of the influencer marketing industry in light of this legislation.

Context and objectives of the law

Law No. 2023-451 was introduced amid growing distrust of influencers' business practices, which were perceived as opaque and sometimes misleading. One of its main objectives was to more strictly regulate commercial collaborations on social media and ensuregreater transparency. In other words, this law aims to hold influencers accountable by imposing transparency obligations on them, particularly regarding paid partnerships and the promotion of products or services.

In essence, the law requires content creators to clearly disclose any sponsored content, to report image retouching, and to comply with certain restrictions on sensitive products, such as financial products, unlicensed health products, or medical devices.

The concrete effects on influencers

1. Obligations of increased transparency

One of the most immediate effects of the law has been a change in influencers' transparency practices. They are now required to clearly indicate sponsored content using hashtags such as "#advertisement" or "#sponsored". This increased transparency has a dual effect: on the one hand, it allows users to more easily distinguish between commercial and personal content; on the other hand, it requires influencers to modify their often well-established posting habits.

Many creators have faced challenges adapting, especially those who built a large part of their audience on seemingly spontaneous content. This shift has also prompted some influencers to reassess proposed collaborations, favoring more authentic partnerships aligned with their public image.

2. Impact on the creativity and tone of publications

Some content creators feel that this transparency requirement limits their creativity. Influencers often seek to subtly integrate products or services, and the requirement for a visible partnership disclaimer could hinder this. This situation has led many influencers to rethink their creative approaches to maintain engagement with their audience while complying with the new requirements.

Furthermore, the requirement to disclose image retouching has also caused controversy. Creators have pointed out that it could restrict their artistic freedom, particularly in sectors where visual aesthetics are paramount, such as fashion and beauty.

3. Fines and prosecutions

The implementation of the law has resulted in sanctions for creators who do not comply with the new rules. Several prominent influencers have been fined for lack of transparency or for promoting prohibited products. These sanctions have raised awareness within the industry and have had a deterrent effect. However, some have criticized the application of these fines, deeming them too harsh for independent creators but insufficiently dissuasive for major influencers.

Impact on influencer agencies and brands

1. Adaptation to new legal constraints

like Influencer agencies  So Bang, which manage partnerships and content strategy for numerous creators, have also had to adapt quickly to new regulations in influencer marketing. They now play a crucial role in training influencers on legal requirements, ensuring that every post complies with current legislation. This has led to a greater need for collaboration between agencies, lawyers, and content creators, resulting in a more professional and better-organized industry.

2. Brand Repositioning

Faced with new requirements, brands have had to adjust their influencer marketing strategy. They now favor partnerships with influencers willing to strictly adhere to transparency rules, thus guaranteeing an ethical brand image that complies with the law. Some brands are even adopting a proactive approach by integrating legal requirements from the campaign design stage, clearly defining communication guidelines for sensitive products.

Impact on consumers

1. Enhanced user protection

The law has provided enhanced protection for users, who now benefit from greater transparency regarding commercial partnerships. By requiring influencers to disclose sponsored content, it helps limit hidden advertising and potential manipulation. This development is particularly important for younger users, who are often more impressionable and make up a large portion of influencers' audiences.

2. Hesitations and adjustments in consumer habits

Paradoxically, some users express frustration with the proliferation of "advertisement" or "sponsored" labels, believing it detracts from the social media experience. However, others highlight the advantage of increased transparency, which fosters a relationship of trust with content creators. Indeed, a relationship based on authenticity is more likely to generate lasting and genuine engagement from the audience.

Remaining challenges and prospects for the future

1. Uneven application and circumvention of the rules

A year and a half after the law was enacted, challenges remain. Uneven enforcement of the rules and attempts to circumvent them continue to pose problems. Some influencers, particularly those based outside France, find ways to circumvent legal obligations by tailoring their posts to target audiences. This situation underscores the need for harmonized regulations at the European, and even international, level to strengthen the law's effectiveness.

2. Continuous adaptation and evolution of the sector

As the influencer industry is constantly evolving, legislation must adapt to ever-changing practices. Law No. 2023-451 represents an important first step, but adjustments will likely be necessary to address new practices and emerging platforms. Dynamic and adaptable regulation will be essential to maintaining a balance between consumer protection and the creative freedom of influencers.

Conclusion: Towards responsible and transparent influence

Law No. 2023-451 initiated a profound change in the influencer industry in France, encouraging more responsible and transparent practices. For influencers, this law meant significant adaptation, requiring adjustments to their practices and collaborations. For agencies and brands, it marked the beginning of a new era, characterized by increased professionalism and a focus on legal compliance.

From the consumer's perspective, the law has helped to establish a climate of trust and transparency, essential in a context of growing distrust of sponsored content. While challenges remain, the implementation of this regulation has paved the way for a more ethical influencer , aligned with the expectations of an increasingly demanding audience.