Estonia is considering implementing stricter regulations on social media influencer advertising, particularly for products and services that require a minimum age check, such as alcohol and gambling.
The Estonian Ministry of Economic Affairs and Communications is currently in the process of drafting a bill to introduce amendments to the regulatory framework monitoring gambling advertisements. These potential changes come as a response to the need for a regulatory regime that is more suitable for the digital age and the rise of social media influencers.
The current Advertising Act in Estonia was passed in 2008 when social media was not as prominent as it is today. With the advancement of technology and the increased influence of social media platforms, the existing regulations are no longer adequate. The Estonian government recognized this issue and has been exploring ways to limit gambling advertising, including the possibility of a blanket ban. The Ministry of Finance also proposed an increase in gambling tax due to significant online revenue growth.
Merike Koppel, the Head of Business Environment at the Ministry of Economic Affairs and Communications, highlighted that the existing regulations are more suited for traditional media and do not address the unique challenges posed by social media and influencers. Influencers, who were not taken into account when the current law was drafted, now hold significant influence and can impact consumer behavior. This has raised questions and concerns both for the influencers themselves and for supervisory authorities.
In an effort to deter illegal promotion of alcohol and gambling products, Estonia raised the financial penalties for violating the Advertising Act. The penalties were increased from €50,000 to €400,000. However, no significant violations have been registered thus far. The proposed amendment to the Act will require policymakers to collaborate with stakeholders to further refine the definition of influencers and establish effective monitoring mechanisms.
Estonian operators in the gambling industry have been cautioned that the government will continue to review and improve market standards and safeguards for national consumers. This ongoing evaluation of gambling laws reflects the government’s commitment to prioritizing consumer protection and ensuring a responsible gambling environment.
