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ROME (Reuters) – Italian communications regulator AGCOM has approved tough new rules to increase transparency in social media posts by celebrities with large online audiences.
The decision comes after Chiara Ferragni, a top influencer with nearly 30 million followers on Instagram, was fined 1 million euros ($1.1 million) by Italian antitrust authorities over a lack of transparency in her Christmas charity work. This was done after he was sentenced to a fine that exceeded the limit.
AGCOM said in a statement late Wednesday that the rule will initially apply to influencers who post in Italian and are affiliated with Italian brands with more than 1 million followers.
Advertising content posted must be clearly labeled to make it recognizable, or social media stars risk fines of up to €600,000.
Because of their broader reach, online influencers often wield more power than traditional advertising in driving product sales and increasing brand exposure.
Last year, France introduced legislation that would make it illegal for influencers to promote products such as cigarettes and increase the transparency of paid content.
Italian authorities added that influencers must respect the code of conduct that applies to all media outlets, which requires fair communication and avoids fake news and discriminatory or racist posts. It is said that this is required.
AGCOM has been working on the new rules for more than a year, but they were not specifically targeting Ferragni, head Giacomo Lasolella said in an interview with Daily La Repubblica, published Thursday.
He said that while the “big fish” will be in the spotlight for now, he expects influencers with smaller followings to “walk the good path.” (1 dollar = 0.9113 euro)
(Reporting by Giulia Segreti; Editing by Keith Weir)