The Maltese Competition and Consumer Affairs Authority (MCCAA) is drawing attention (6 November) to transparency in influencer marketing, urging influencers, brands, and marketing agencies to follow consumer protection standards. With influencers playing an influential role in today’s digital advertising landscape, the MCCAA emphasizes that misleading or unclear promotions may misinform consumers about paid partnerships.
Although no specific Maltese law governs influencer marketing, the Unfair Commercial Practices Directive, transposed in Malta as Part VIII of the Consumer Affairs Act (Chapter 378), aims to protect consumers from deceptive marketing practices. For example, Article 51D(1)(b) of the Act considers it a “misleading omission” if the commercial nature of a post is hidden or ambiguously presented. Additionally, the First Schedule prohibits false claims suggesting an influencer is acting as a consumer or representing their views independently if they are, in fact, paid promotions.
The MCCAA outlines that influencers engaged in profit-driven activities, such as sponsored content, bartered services, or affiliate partnerships, fall under the category of “traders” and thus must disclose the commercial element in their content. This means clear compliance with consumer protection guidelines, including:
- Directly Labeling Paid Content: Influencers should identify all sponsored or paid posts using straightforward terms like “advertisement” or “ad.”
- Placement and Visibility: Disclosures should appear at the beginning of captions or prominently on screen, with adequate contrast for readability.
- Avoiding Ambiguity: Terms such as “gifted,” “partner,” or “ambassador” may not convey the commercial nature of a post sufficiently. Subtle acknowledgments, such as tagging brands or using “thanks,” are also insufficient.
- Transparency in Promotional Codes: Sharing discount codes or reviews without clearly indicating the commercial link, or hiding disclosures within hashtags, does not meet transparency standards.
Under Maltese consumer law, failure to disclose paid partnerships is a breach that could lead to investigations, legal action, or penalties. The MCCAA calls on influencers to uphold these standards to build consumer trust and enable well-informed purchasing decisions.
The authority is also releasing an Influencer Marketing and Consumer Rights Guidebook to assist influencers, brands, and agencies in complying with transparency requirements, ensuring that consumer rights are upheld across digital platforms.
Source: https://mccaa.org.mt/Section/Content?contentId=11391
