France tightens KOL | SAIGON GIAI PHONG NEWSPAPER

SGGP 06/06/2023 07:05

The French National Assembly (Lower House) and Senate have just passed a bill regulating the marketing activities of social media influencers (KOLs).

Accordingly, KOLs are prohibited from advertising low-quality products, committing scams or fraud on social networks. The regulation in the law helps protect internet users from information that is intentionally edited by content creators to generate super profits.

Under the bill that was passed, influencers would be required to label content that has been paid for by brands when creating content that encourages their audience to buy a product or service. The law includes a requirement that collaborations between influencers and brands be clearly disclosed to make commercial activities more transparent. Violators would face up to two years in prison and fines of up to €300,000 ($321,000).

According to estimates by the French Ministry of Economy, Finance, Industrial Sovereignty and Digital, there are about 150,000 influencers in the communication work of brands on French social networks. The bill was drafted and issued in the context of French public opinion demanding activities to regulate exaggerated advertising on social media as well as the need to protect consumers. That is the reason why the bill has received widespread public support. The Minister in charge of small and medium-sized enterprises, Ms. Olivia Gregoire, commented that the regulation will make KOLs work within the legal framework and internet users in France are protected from the risk of abuse from online commerce.

Tightening the management of KOLs has been implemented in some Asian countries such as South Korea and China. Since 2020, South Korea has banned KOLs from promoting products and services on their channels without disclosing their relationship with the sponsoring business. In mid-2022, China issued new regulations requiring KOLs to have relevant degrees when livestreaming about the fields of law, finance, medicine and education. The new regulations also emphasize that KOLs should honestly declare their income, advertise honestly and fulfill tax obligations according to the law.

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