Influencer marketing has grown significantly both globally and locally over the past few years. When done well, it can be highly effective. However, as with any marketing method, there have been cases where consumers risk being misled.

Influencer marketing typically works by brands either gifting products or paying influencers, or a combination of both, in exchange for sharing content related to the product or service with their followers.

In an ideal world, content creators would openly disclose any payment or compensation received, clarifying it as a paid collaboration. However, the influencer marketing industry, both internationally and locally, has often struggled with transparency, which has attracted the attention of regulators. Another common concern is the unattainable lifestyle influencers sometimes portray. When influencers do not disclose paid collaborations, followers may assume they can afford all the brands they feature and “purchase,” potentially leading to unrealistic expectations among audiences.

Content creators sometimes resist using hashtags like #ad, arguing that organic algorithms de-prioritise sponsored content, especially if it is not boosted. They believe that including such tags may reduce the reach and visibility of their posts, as algorithms tend to favour non-sponsored content.

Ultimately, trust is one of the main factors determining an influencer’s success. If their followers do not trust them, their influence loses its impact. For this reason, it is in influencers’ best interest to be transparent with their followers if they are aiming for long-term success. However, some influencers focused on short-term gains may be less enthusiastic about these updates.

Objective of New Legislation for Influencers in Malta

The primary objective of the new regulations shared by MCCAA in November 2024 is to ensure that consumers can recognise when content is commercially driven. Any paid or sponsored content must be clearly labelled, with a transparent indication that the influencer has received compensation or free products. The law views the non-disclosure of commercial relationships as a “misleading omission,” which can lead consumers to mistakenly believe that endorsements are organic, unpaid opinions.

The specific guidelines align with the EU’s Unfair Commercial Practices Directive and are now embedded in Malta’s Consumer Affairs Act (Chapter 378).

Influencers in Malta: Classified as ‘Traders’

Under Malta’s updated framework, influencers involved in monetised activities such as sponsored posts or affiliate marketing are classified as “traders.” This designation means influencers must adhere to the same standards as traditional advertisers, fully disclosing all commercial relationships. Whether an influencer receives a product for free, participates in an affiliate programme, or is paid for a collaboration, they must clearly communicate the nature of their relationship with the brand.

What are the Key Obligations by Influencers?

Previously, transparency for influencers in Malta was considered a recommended practice. Now, it is a legal obligation. To comply with the new regulations, influencers should follow these guidelines:

Clear Communication: Influencers must label paid or sponsored content with explicit terms like “advertisement” or “sponsored.” These labels should appear prominently, ideally at the beginning of captions or within the main content.

Avoidance of Vague Terms: Terms such as “partner” or “ambassador” should not be used without a clear explanation that the content is commercially influenced. The language should leave no ambiguity regarding the nature of the endorsement.

Transparency with Commissions: When promoting discount codes or affiliate links, influencers must clarify if they benefit financially from a consumer’s purchase by getting commission on the purchase. Disclosures should be positioned separately from hashtags, ensuring they are easily noticeable.

Clarity on Reviews: If an influencer is reviewing a product received for free or as part of a sponsorship, this must be disclosed openly. Subtle or hidden disclosures may be deemed non-compliant under Malta’s regulations.

Impact on Influencers, Brands, and Agencies

Malta’s consumer law places the responsibility of transparency not only on influencers but also on brands and agencies involved in influencer campaigns. Failing to disclose paid relationships or to meet transparency standards can result in penalties under the Consumer Affairs Act. Brands and agencies must ensure the influencers they collaborate with understand their disclosure obligations, while influencers must uphold these standards to maintain consumer trust.

As Malta’s influencer marketing landscape evolves, these new transparency regulations present both a responsibility and an opportunity for brands. By actively supporting compliance and encouraging clear, authentic communication with audiences, brands can build stronger, trust-based relationships that enhance their long-term credibility. When brands work with influencers who prioritise transparency, they are not only protecting consumers but also reinforcing the integrity of their own messaging.

At GRO, we specialise in helping brands implement influencer marketing collaborations that drive real success. With our extensive experience, we know how to identify the right influencers in Malta who align with a brand’s values and audience, ensuring each partnership is both strategic and impactful.

Our team handles every aspect of the process, from selecting the ideal influencers to briefing them thoroughly, managing compliance with all regulations, and ensuring every detail is executed correctly. By focusing on authenticity and precision, we help brands maximise the effectiveness of influencer campaigns, building trust with audiences and delivering measurable results. Contact us for a meeting.

This article was written by founder of GRO and marketing expert, Davinia Mallia Pulé