Calls to tighten rules to stop influencer industry becoming 'lawless frontier'

The world of influencers risks becoming a “lawless frontier” unless existing regulations and guidelines are changed to keep pace with the booming industry.

The warning comes from media law expert, Dr Alexandros Antoniou, who says a legal blind-spot in existing UK rules on the transparency of their endorsements means some social media influencers are slipping through the cracks and creating an industry where “unscrupulous actors can flourish”.

Influencers, as a new breed of advertisers, are currently regulated by the Advertising Standards Authority through the advertorial test, meaning those who do not monetise their content are still seen as amateurs, free from regulatory oversight.

But the perceived amateur status of some influencers is increasingly becoming an “untenable assumption”, Dr Antoniou says, with both consumers and followers now left vulnerable to questionable marketing practices.

In a new report, Dr Antoniou calls on regulators to adopt a more holistic and adaptable approach that matches the complex nature of the influencer sphere.

“The established rule to make clear that ads are ads only applies to those influencers who have forged brand partnerships.

“However, early career influencers who may not monetise their content, still wield significant influence,” he said.

“They have a remarkable knack of cultivating genuine connections that bestow hidden promotional content with an unmatched aura of trustworthiness.

“From a regulatory standpoint, we are not seeing influencers’ increasing professionalisation. Lawmakers must ensure all social media influencers are accountable to prevent a lawless frontier which undermines the integrity and sustainability of this emerging profession.”

Dr Antoniou, of Essex Law School, adds that the influencer definition put forward by the Digital, Culture, Media and Sport Committee should be adopted to give lawmakers a cornerstone for the creation of more impactful policies.

In his report, he warns the principal tools used by the Advertising Standards Authority are outdated, allowing newcomers in the industry to fly beneath its radar.

The findings build on Dr Antoniou’s previous research around transparency on influencers’ endorsements on social media and come following an in-depth analysis of ASA’s rulings targeting non-compliant influencer in the last five years.

Influencer marketing was thought to be worth around $21.1bn in 2023, with that number expected to rise further beyond $24bn in less than two years.

You can read Dr Antoniou's report here.