Introduction: The glittering world of influencers, often perceived as a realm of glamour and success, has recently been marred by controversy in Italy. Chiara Ferragni, a luminary among influencers, faced a significant setback when the Italian Competition Authority (AGCM) imposed a hefty fine of over one million euros. The penalty was a consequence of her allegedly misleading promotion of a Pandoro (a Christmas sweet similar to Panettone) with false charitable claims. As the scandal unfolds, Italy has responded by introducing new regulations to curb malpractices associated with influencers.
The Chiara Ferragni Scandal: Approximately a month ago, Chiara Ferragni found herself in the midst of a storm as AGCM sanctioned her for what was deemed a deceptive marketing strategy. The authority accused her of falsely asserting that proceeds from the “Pink Christmas” Pandoro, a collaboration with Balocco, would benefit children with cancer at the Regina Margherita Hospital in Turin. Subsequently, it was revealed that the hospital had not received any funds despite the sale of over 360,000 units of the contentious Pandoro. Ferragni, with nearly 30 million followers on Instagram, issued apologies, attributing the situation to a communication error. Nevertheless, brands like Coca-Cola severed ties with the influencer in the ensuing weeks.
Italy’s Response: Stricter Regulations for Influencers: In light of the Chiara Ferragni scandal, Italy, her home country, has enacted stringent regulations to deter questionable practices within the influencer sphere. AGCM, the Italian Communications Authority, has approved a set of rules aimed at enhancing transparency in social media posts by influencers with substantial follower bases.
The new regulations will initially apply to influencers who share content in Italian, collaborate with brands based in Italy, and boast more than one million followers. AGCM aims to enforce proper labeling of commercial content on social media to ensure audiences can easily discern advertisements. Moreover, content creators must safeguard the integrity of minors, akin to the regulations imposed on television and other media. Violations of AGCM rules could result in fines of up to 600,000 euros.
In the event of influencers breaching advertising standards, fines may reach up to 258,228 euros, and for offenses against the well-being of minors, sanctions could escalate to 600,000 euros.
AGCM asserts that influencers, given their extensive reach, wield considerable influence in driving product sales and brand exposure. The regulatory body emphasizes the need to eliminate the erstwhile “Wild West” environment in Italian influencer marketing.
Aligning With International Trends: Italy’s move to implement these measures follows a trend set by France, which introduced legislation last year prohibiting influencers from promoting products like tobacco and mandating transparency in paid content. Spain is also in the process of formulating stricter regulations for influencer activities. According to the proposed Spanish decree, influencers operating in the country will need to register in a national registry and adhere to specific obligations to protect minors and appropriately label commercial communications.
AGCM further mandates influencers to adhere to a code of conduct applied to media organizations. This requires influencers to maintain impartiality in their communications, avoid spreading fake news, and refrain from discriminatory or racist posts.
While AGCM presented these regulations in the aftermath of the Chiara Ferragni scandal, it asserts that the rules have been in development for over a year. Giacomo Lasorella, head of AGCM, clarified in a recent interview with La Repubblica that while the regulations initially target high-follower influencers, they will eventually apply to creators with smaller followings.
Conclusion: As Italy takes a decisive step towards regulating influencer marketing, the landscape undergoes a transformation. The aftermath of Chiara Ferragni’s controversy serves as a catalyst for these changes, highlighting the need for accountability and transparency in the influential realm of social media. The evolving regulations aim to strike a balance between fostering authentic influencer content and protecting the interests of consumers and society at large. The coming months will witness the impact of these regulations on influencer practices and the extent to which they reshape the dynamics of digital marketing in Italy.
