Cyprus government takes aim at influencer marketing

The Consumer Protection Service (CPS) and the Advertising Control Agency (ACA) this week signed a 5-year memorandum of understanding (Mou), aiming to inform consumers about the commercial pursuit of posts published by influencers on various social media platforms.

In addition, it is also noted that the ACA has drawn up a Guide for Influencer Marketing, which is a separate Appendix of the Cyprus Advertising Code. This Guide is recognised as a best practice by the Ministry of Health.

Minister of Energy, Commerce, and Industry George Papanastasiou, after referring to the mission of the CPS to ensure a high level of consumer protection in the liberalised and competitive market, emphasised that “in recent years, influencer marketing has become a key factor in the digital economy.”

Building on this foundation, the CPS and the ACA, taking into account the importance of influencers’ compliance with consumer law and the empowerment of consumers in the digital age, have set the common goal of adequately informing consumers about the commercial pursuit of posts by influencers in platforms/social media.

On behalf of the Consumer Protection Service, its Director, Constantinos Karagiorgis said that “the significant development of the digital advertising practice called influencer marketing prompted the European Commission in 2023 to carry out the Sweep survey on influencers, from which it became clear that further actions are required in this area.”

He added that “at the national level and within the framework of cooperation with the ACA, the Service will support and promote the Guide for influencer marketing, which has been prepared by the agency, while it will organise an information campaign for influencers regarding the information they must provide to the consumer public.

As part of the information campaign, relevant material will be promoted on the social media platform available to the Ministry of the Interior, as well as a public announcement” and that “a relevant video will be prepared, which will be addressed to influencers, guiding them epigraphically on the legal framework that they should follow in their posts.”

On behalf of the ACA, the president, Sotiroulla Sotiriou, stated that “influencer marketing is recording great growth following the dynamic development of the social media and the corresponding platforms in the national and global field”.

She indicated that “already in 2021, based on research by the Cyprus Advertisers Association, the investment in influencer marketing amounted to 7 per cent of the advertising budget in digital media, and the advertising community recognises that this percentage is constantly increasing”.

“The legislation, as well as advertising ethics, are clear regarding the need for the public to know whether the content they receive is advertising, respecting the conditions of transparency, professionalism, and correct practice,” she emphasised.

Moreover, she explained that for the ACA to provide support, training, and expertise to influencers, it has drawn up guidelines for influencer marketing in simple, clear, and appropriate ways to communicate the commercial nature of influencers’ posts, to avoid cases of misleading consumers, especially concerning the specific audiences that each influencer and advertiser addresses.