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Human Ads: Towards Fair Advertising in Content Monetization on Social Media

Project description

New transparency obligations for social media platforms

Influencers on social media can earn a living by creating and monetising authentic and relatable advertising content, referred to as human ads. Not only is this content commercial, it can also include hidden political advertising. This makes it difficult for consumers to distinguish between ads and non-ads. The EU-funded HUMANads project will explore this trend. It will study whether there is need for a general European legal regime on fair advertising in human ads. It will also propose a new normative governance model for more stringent transparency obligations on social media platforms. The project will articulate a new theory of fair advertising in EU consumer law, collect evidence concerning business models, advertising prevalence and legal uncertainty, and propose criteria for consumer damages assessment.

Objective

Human ads are Internet influencers who earn revenue by creating and monetizing authentic and relatable advertising content for their armies of followers, by relying on business models such as influencer and affiliate marketing. This content often results not only in commercial but also political (hidden) ads, which look the same, are posted by the same persons, are displayed in the same digital space, to the same audiences, and raise the same transparency issues. In this environment, consumers and citizens can no longer distinguish between ads and non-ads, and between commercial and political communications. They are faced with a double transparency problem: (i) human ads have incentives to hide commercial interests, and (ii) platforms have incentives to algorithmically amplify human ads engagement in opaque ways. This reflects a general good faith and fair dealing problem: the social media economy is increasingly based on deceit, which leads to new forms of vulnerability for consumers and citizens on digital markets. Given its complexity and relative novelty, this phenomenon has not yet been the object of sustained academic or regulatory inquiry. HUMANads tackles this comprehensive research gap by exploring why a general European legal regime on fair advertising by human ads on social media platforms is necessary, and what it would entail. First, it articulates new theory of fair advertising in EU consumer law, in the context of content monetization by human ads across commercial and political speech. Second, it gathers evidence relating to business models, advertising prevalence and legal uncertainty through innovative interdisciplinary methods including digital ethnography, comparative law and natural language processing (NLP). Third, it proposes criteria for the assessment of resulting consumer harms, and translates them into a new normative governance model mandating more stringent transparency obligations on social media platforms.

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Keywords

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Topic(s)

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HORIZON-ERC - HORIZON ERC Grants

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Call for proposal

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(opens in new window) ERC-2021-STG

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Host institution

UNIVERSITEIT UTRECHT
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 1 500 000,00
Address
HEIDELBERGLAAN 8
3584 CS Utrecht
Netherlands

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Activity type
Higher or Secondary Education Establishments
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Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

€ 1 500 000,00

Beneficiaries (1)

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