New Regulations for KOLs and Influencers in Advertising

The draft law introduced by Minister of Culture, Sports and Tourism, Nguyen Van Hung, aims to enhance the responsibilities of Key Opinion Leaders (KOLs) and influencers regarding advertising content.

According to the proposed regulations, KOLs and influencers must ensure that their advertising adheres to consumer rights protection laws and accurately reflects the characteristics of the advertised products and services. They are also obligated to report their earnings from advertising services in compliance with tax regulations.

Additionally, individuals involved in advertising must clearly inform consumers that they are promoting products.

A significant aspect of the draft law states that KOLs must have actually used the cosmetics and health products they review on social media before sharing their thoughts.

Nguyen Dac Vinh, Chair of the National Assembly’s Committee of Culture and Education, expressed support for this requirement but highlighted the lack of clarity on how to verify KOLs’ usage of advertised products and the consequences for non-compliance.

Hoang Thanh Tung, Chair of the National Assembly’s Committee of Legal Affairs, emphasized the prevalence of misleading advertisements that can have serious repercussions for consumers. He called for a thorough review of existing laws and the establishment of effective measures to address advertising violations.

He noted, “While we have regulations in place, false advertisements continue to appear in mass media.”

The potential harm to consumers, especially when it comes to unverified claims about medical products, was a major concern. “Many advertisements are alluring, yet the products often don’t deliver,” he remarked.

Tung urged that the new law delineate clear responsibilities for all parties involved in advertising, including advertisers, agencies, KOLs, and regulatory bodies.

Vu Hong Thanh, Chair of the National Assembly’s Economics Committee, agreed that many advertisements exaggerate product capabilities, especially pharmaceuticals, and suggested clarifying the obligations of companies providing the advertised products.

Nguyen Thanh Hai, head of the National Assembly’s Committee for Deputy Affairs, noted that many prominent figures on social media are promoting products and services that often face quality issues. She stressed the need for regulations that uphold truthfulness in advertisements to safeguard consumer rights.

Hai acknowledged the challenges of monitoring advertising practices and called for rules aimed at closing legal loopholes that can lead to consumer exploitation.

She pointed out that issues extend beyond cosmetics and food products; for instance, when travelers seek information about destinations online, they often rely on celebrity endorsements of restaurants as advertisements.

Many social media users generate content about eateries, which can significantly boost restaurant traffic and revenue. However, while diners can provide feedback, they cannot ensure food safety and health standards.

Regarding online advertising, the draft law proposes an update to the required duration of unskippable ads from 1.5 seconds to 6 seconds, limiting sequences to no more than two consecutive ads.

Deputy Minister of Information and Communications, Nguyen Thanh Lam, mentioned that the prevalent bumper ad duration for many cross-border platforms like YouTube is now set to six seconds.