France tightens KOL | SAIGON GIAI PHONG NEWSPAPER

SGGP June 6, 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 provisions in the law help 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 paid for by brands when creating content that encourages audiences to buy products or services. 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 and Digital Sovereignty , 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 to have activities to regulate exaggerated advertising on social media as well as to protect consumers. That is the reason why the bill has received a large response from public opinion. The Minister in charge of small and medium enterprises, Ms. Olivia Gregoire, commented that the regulation will make KOLs work within the legal framework and internet users in France will be protected from the risk of abuse from online commerce.

Tightening 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 sponsoring businesses. 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.

Source: https://www.sggp.org.vn/phap-siet-kol-post692579.html