MALTA Law and Practice Contributed by: Karl Tanti and Christine Borg Millo, AE Legal
To date, there have not been any significant ambush marketing incidents in Malta similar to those that have taken place overseas. 5. Social/Digital Media 5.1 Special Rules Applicable to Social Media Advertising on online platforms and social media is regulated under the same general framework that applies to all forms of advertising, but with heightened emphasis on transparency and disclosure given the nature of digital marketing. The generic laws found within the Consumer Affairs Act are applicable. Additionally, all advertising forms must conform to sector-specific regulations, for exam - ple, the promotion of tobacco products is prohibited, and specific advertising standards apply to gambling- and alcohol-related advertisements. 5.2 Liability for Third-Party Content The Consumer Affairs Act establishes that businesses must not engage in misleading or aggressive prac - tices that could distort consumer decisions. If content posted by third parties on an advertiser’s platform is misleading, false, or deceptive, the advertiser may be considered responsible if it endorses, promotes, or fails to remove such content after being notified. Advertisers hosting third-party content must also con - sider copyright, trade mark, and other IP rights. Malta’s Electronic Commerce Act (S.L. 426.02) trans - poses the EU E-Commerce Directive (2000/31/EC). This provides a framework for hosting liability, which distinguishes between different types of Information Society Service Providers (ISSPs). Passive hosts are generally not liable for user content if they do not have actual knowledge of illegal content, and act expedi - tiously to remove or disable access once notified. If the platform exercises editorial control, such as promoting, highlighting, or endorsing user content, it may lose the “safe harbour” protection and become directly liable for any illegal, misleading, or infringing content.
The Media and Defamation Act (Chapter 579 of the Laws of Malta) regulates all forms of dissemination of ideas, information or opinions on matters of public interest to the general public or to a portion of the public under the editorial control of an editor. Under this Act, liability for defamation can extend to any party that publishes or republishes content. If liability is established under this Act, courts can order removal of the offending content or prevent fur - ther publication, and criminal liability may also arise. This Act operates alongside the Consumer Affairs Act, intellectual property laws, and E-commerce reg - ulations, meaning that online advertisers or platform operators in Malta must manage user content care - Although no such regulations or restrictions exist in Malta, in November 2024, the MCCAA issued Guide - lines on Influencer Marketing and Consumer Rights to ensure transparency and protect consumers in social media advertising. The guidelines require influencers to clearly disclose any commercial relationships in every post, story, or reel, using explicit labels such as “advert” or “advertising”, and to utilise platform disclosure features like “paid partnership” or “spon - sored”. Disclosures must be prominently placed, readable, and visible from the first screen. A notable example illustrating the importance of prop - er disclosures in social media is the case of Italian influencer Chiara Ferragni, who faced a significant backlash and regulatory action for failing to disclose commercial intent in a charitable product campaign. Ferragni partnered with Balocco to sell a branded pan - doro, claiming that proceeds would benefit the Regina Margherita paediatric hospital in Turin. In reality, the donation had already been made by the company pri - or to sales, while Ferragni earned EUR1 million from the campaign. She was subsequently fined and forced to issue a public apology on social media. This case underscores the risks of inadequate or misleading dis - closures and highlights why the MCCAA guidelines in Malta, and similar EU guidance, emphasise clear, prominent, and accurate disclosure, even in space- fully to avoid multiple legal liabilities. 5.3 Disclosure Requirements
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