As of: April 3, 2024, 4:00 p.m
By: Carina Blumenroth
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For many young people, their smartphone is often just a flick of the wrist away. Always available: advertising for products and finances on social media.
Fashion here, financial tips or savings options there – influencers present current deals to their followers on TikTok and Instagram. In return, they receive money or other monetary benefits from the companies. In individual cases there may also be controversial products among the deals and products advertised. The Greens are therefore calling for a Europe-wide advertising ban for influencers for financial products, medical products, gambling and unhealthy foods, the
Handelsblatt
informs . The portal has an unpublished paper with recommendations to the EU Commission. The SPD and FPD criticize the project because it mixes different topics. Food advertising should therefore be assessed differently than financial advertising.
Advertising on social media – incentive for “risky financial products”?
Financial advertising on social media can mislead people. At least if you don't pay attention to how competent the tipsters are. The Greens want the regulations to be tightened across Europe. (Symbolic image) © Zoonar.com/Yuri Acrus peopleimages.com/Imago
The chairwoman of the Bundestag's digital committee, Tabea Rößner, tells the
Handelsblatt
: "But adults are also seduced by influencers, for example to buy risky financial products." Some could be harmed if they “fall into the trap of questionable recommendations.”
How can I protect myself from questionable financial tips?
Users can get a lot of information and tips online on social platforms. These include valuable incentives that are technically sound, others are only partially recommended or not recommended at all. Below you will find out how you can check whether the offer of influencers in the financial sector (finfluencers for short) makes sense.
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First of all, you should look at who wants to give you the tips. If the person's identity is not clear to you or where the person's financial knowledge comes from, you should be vigilant. The
Federal Financial Supervisory Authority (BaFin)
informs you that you can check the information provided by reputable players using other sources.
BaFin
gives further tips for users:
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Use multiple sources:
Don’t just look at the Finfluencer’s post. Find reputable sites so that you can get comprehensive information. A source of information can be, for example, the consumer advice center.
Resist time pressure:
If you want to make an investment or get investment tips, don't be blinded by the fast pace of social media. Check the opportunities and risks of the offer beforehand.
How is the tip motivated:
It is free for users to follow private individuals and influencers. You should therefore question the influencer’s motive. Is there an offer of knowledge behind this or was the influencer commissioned by a company to advertise in exactly the same way? Go to the primary source and take a close look at the company's website.
Fast, secure money:
You should question promises of high and secure profits. “There is no such thing as safe, quick money,” informs
BaFin
. Such offers are associated with risks; they are often “highly speculative investment products”.
You should also be careful if you switch to private messenger services. This means you give out your contact details and can receive unsolicited calls.
Financial education and profit or affiliate programs
The project, if it becomes part of the European Consumer Agenda 2025 to 2023, can be a game-changer for influencers who use the offer to contribute to the financial education of young people. Alexander Zureck from the FOM University tells
t3n
: “A general advertising ban would also affect those finfluencers who contribute significantly to the financial education of young people with their accounts and at the same time have a legitimate interest in monetizing their reach as creators.” His In my opinion, regulation should rather take place with providers of affiliate programs. Currently, influencers must disclose if they receive compensation for a post or if an affiliate link is set.