France Considering Ban on Influencers Advertising Gambling, Cryptocurrency
France is taking aim at a new industry as protests rage over unwanted pension reforms. A new bill, Bill 790, is being considered that aims to reduce the power of social media influencers on gamblers and cryptocurrency investors.
This bill seeks to address the issue of unregulated or unlicensed activity being promoted by influencers on social media. Since no crypto project is licensed in France, this essentially shuts down that market for content creators.
The legislation would ban advertising in exchange for payment of games of skill and chance, video games with loot boxes, pharmaceuticals, and cryptocurrencies. Those who disobey the law could face up to two years in prison and a fine of €30,000 (US$32,730).
The proposed bill could also affect social media platforms. While the details aren't completely clear, it seems that violations of the law could also result in consequences for "distribution platforms" like YouTube, Instagram, and others.
France's Bill 790 states, "The objective of this bill is to create and strengthen a legal system that can both empower and sanction, where appropriate, all influencers, their agencies, advertisers, and distribution platforms, in order to strengthen the protection of social network users and consumers."
Bill 790 has already gained support in France's legislature. The Economic Affairs Committee of the National Assembly approved it on Wednesday, and it will now go before the full Assembly and Senate.
No timeline has been set for the decision to be made.
Going After Influencers
Influencers who break the law could face another penalty, though it's harder to enforce. They could be stopped from working as an influencer temporarily or permanently.
Influencers have been a hot topic in France for several weeks. Three weeks ago, the General Directorate for Competition, Consumer Affairs, and Fraud Prevention reported that of the 60 influencers and agencies they've targeted since 2021, 60% didn't follow advertising regulations and consumer rights policies.
Clamping Down on Scams
The legislation comes in response to several scams that have plagued France's digital channels this year.
In January, over 100 people joined a class-action lawsuit against two individuals promoting cryptocurrency investments and trading. The investments turned out to be a scam, and the influencers have since fled to Dubai to avoid prosecution.
This same fraud also garnered the attention of the United States Securities and Exchange Commission (SEC).
The SEC has also gone after influencer and MMA fighter Jake Paul, actress Lindsey Lohan, and Justin Sun for illegal promotions. Sun is the founder of the Tron crypto project, and the SEC accuses him of manipulating markets and offering unregistered securities.
Last year, French influencer and reality TV star Laurent Correira ended up in the spotlight. He was allegedly a significant player in the "Billionaire Dogs Project," an NFT (non-fungible token) offering. It ended in a rug pull, but not before amassing just under $1 million.
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