Brands are pushing influencers to hide their paid deals

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Intelligence Network • Data Science • AI Research • World News
Published: 2026-09-09T12:20:30.868Z • Permanent link

Lavish spending by social media giants like Kylie Jenner and Travis Scott has long been a hallmark of influencer marketing. However, a growing number of brands are now pushing influencers to keep their paid partnerships under wraps. According to a recent survey, nearly 40% of major brands are asking creators to conceal their sponsored content. This move has sparked a heated debate about the transparency and authenticity of influencer marketing.

Regulators in the European Union are taking notice of the trend, with the European Commission launching an investigation into the practices of several major social media platforms. The commission's probe aims to determine whether the platforms are adequately disclosing sponsored content to their users. Meanwhile, in the United States, the Federal Trade Commission has been cracking down on influencers who fail to clearly label their sponsored posts.

Companies like LVMH and Estee Lauder are among those pushing influencers to be more discreet about their partnerships. The move is seen as a way to avoid damaging the reputation of the influencer marketing industry, which has faced criticism for its lack of transparency. According to a recent report, the global influencer marketing industry is projected to reach $24.1 billion by 2025, making it a highly lucrative sector for brands and influencers alike.

Growing concerns about the lack of transparency in influencer marketing are having a significant impact on the Data Sources domain. Research communities are increasingly calling for more robust disclosure requirements, citing the need for greater accountability and trust among consumers. The lack of transparency is also affecting companies like Facebook and Instagram, which are facing scrutiny over their handling of sponsored content.

Markets are also feeling the effects, with investors becoming increasingly cautious about the long-term viability of influencer marketing. A recent survey found that 71% of investors believe that the industry's lack of transparency is a major risk factor. As a result, companies like influencer marketing platform AspireIQ are developing new tools and strategies to help brands and influencers manage sponsored content more effectively.

The push for greater transparency in influencer marketing is part of a broader trend towards increased regulation in the digital advertising industry. The rise of the General Data Protection Regulation (GDPR) in the European Union has highlighted the need for greater transparency and accountability in online advertising. In the United States, the Children's Online Privacy Protection Act (COPPA) has also led to increased scrutiny of influencer marketing practices.