EU requires information on payers in advertising

The European Union has adopted new rules requiring advertisers to include a beneficiary and a payer in their Facebook and Instagram ads targeting the EU or its affiliated territories starting June 10, 2023. This rule also applies to globally targeted ads and is mandatory in all new, duplicate, or edited ads.

Advertisers who refuse to provide this information will be blocked from publishing their ads. This information must be provided when creating ads, and it is stored in the meta ad library, but is not visible in the ads themselves or in the feed. The information is retained in the ad library for up to one year after the ads receive their last impression.

It is important to note that specifying beneficiaries and payers does not affect ad delivery, costs, bids, features, or ad reviews.

Who must be listed as beneficiary and payer?

It is the responsibility of advertisers to comply with the applicable laws and regulations of the country in which they wish to place their ads.

Under the EU Digital Services Act (DSA), advertisers must provide information about the natural or legal person on whose behalf the advertisement is placed (beneficiary) and the person or organization paying for the advertisement (payer). Several scenarios can arise:

• A small business can be listed as both a beneficiary and a payer.
• In the case of a subsidiary of a parent company, the subsidiary may be named as the beneficiary and the parent company as the payer.
• If an individual promotes a product, service, or candidacy, the name of the promoted product, service, or candidate must be listed as the beneficiary. The individual acts as the payer in this case.

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The identification of beneficiaries and payers is required if advertising is targeted either worldwide or to the following EU countries and territories:

• Åland Islands
• Austria
• Azores
• Belgium
• Bulgaria
• Büsingen am Hochrhein
• Campione d'Italia and Italian areas of Lake Lugano
• Canary Islands
• Croatia
• Cyprus
• Czech Republic
• Denmark
• Estonia
• Finland
• France
• French Guiana
• Germany
• Greece
• Guadeloupe
• Heligoland
• Hungary
• Ireland
• Italy
• Latvia
• Lithuania
• Livigno
• Luxembourg
• Madeira
• Malta
• Martinique
• Mayotte
• Melilla and Ceuta
• Mount Athos
• Netherlands
• Poland
• Portugal
• Reunion
• Romania
• St. Martin (France)
• Slovakia
• Slovenia
• Spain
• Sweden

These new requirements ensure transparency and accountability in advertising and serve to protect consumers within the EU.

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