Court: YouTube Ads Must Be Clearly Labeled - German court orders YouTube to strengthen sponsorship disclosures for influencers
A German court has ruled that YouTube must improve how it labels sponsored videos. The case involved a financial influencer whose video promoting a brokerage app failed to clearly disclose its advertising nature. The ruling highlights concerns over transparency in online promotions.
The Bamberg Regional Court found that a finfluencer's video violated the EU's Digital Services Act (DSA). The issue centred on a disclaimer, 'Contains paid promotion', which appeared for only ten seconds—too brief, according to the court. The judgment stated that advertising must be 'sufficiently transparent and clearly recognizable in real time'.
The case was brought forward by the Baden-Württemberg Consumer Protection Agency. While the ruling is not yet final (Case No. 1 HK O 19/25), it sets a precedent for stricter sponsorship disclosure on YouTube. In response, a YouTube spokesperson confirmed the platform would review the judgment once details are available. The company indicated it takes the matter seriously and may adjust its policies to meet DSA requirements for clearer advertising labels.
The decision means YouTube videos with paid sponsorships must now carry more visible and persistent disclaimers. The platform has not yet outlined specific changes but has signalled a willingness to comply. The outcome could influence how other social media platforms handle advertising transparency in the EU.
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