post-thumbnail

Affiliate Marketing in the EU: Regulations to Know

Posted on 23 April 2024

Affiliate marketing remains one of the most effective promotion tools for brands across the European Union. However, the highly regulated EU market requires businesses and affiliates to pay close attention to legal requirements. Failure to comply may result in fines, reputational damage, or blocked advertising campaigns.

This article covers the key regulations everyone involved in affiliate marketing in the EU must know.

What Is Affiliate Marketing and Why Is It So Popular in the EU?

Affiliate marketing is a model in which an affiliate promotes a company’s product or service and earns a commission for each user action: a purchase, click, registration, or another conversion.

Why affiliate marketing is growing in the EU

  • high internet penetration

  • a mature e-commerce ecosystem

  • transparent legal environment

  • strong consumer trust in certified advertising

  • focus on data privacy and consumer protection

Major EU Regulations You Need to Know

The affiliate marketing industry in the EU is regulated by laws related to advertising, transparency, and data processing. Here are the most important ones.

1. GDPR (General Data Protection Regulation)

GDPR is the main EU law governing personal data protection. It impacts affiliate marketing in situations where:

  • affiliates collect user data (cookies, IP addresses, email addresses)

  • tracking tools, pixels, or analytics are used

  • data is transferred to third parties

Compliance requirements:

  • obtain explicit consent for cookies and tracking

  • update your Privacy Policy to reflect affiliate activities

  • sign a Data Processing Agreement (DPA) between companies and affiliates

  • ensure users can request deletion or access to their data (“right to be forgotten”)

Non-compliance may result in fines of up to €20 million or 4% of annual global revenue, whichever is higher.

2. ePrivacy Directive (Cookie Law)

This directive regulates the use of cookies—an essential tool for affiliate tracking.

Key requirements:

  • cookie purposes and durations must be transparent

  • non-essential cookies cannot be activated without user consent

  • cookie banners must be clear, user-friendly, and free of dark patterns

Since cookies are crucial for conversion tracking, compliance with this directive is essential.

3. Consumer Rights Directive

This directive protects consumers and requires:

  • clear disclosure that content includes advertising

  • transparent pricing and purchasing information

  • prohibition of misleading users

In affiliate marketing:

Affiliates must label promotional content with disclosures such as:

  • “Advertisement”

  • “Sponsored link”

  • “Affiliate link”

Failure to disclose may be considered deceptive advertising.

4. Unfair Commercial Practices Directive

This directive prohibits:

  • fake reviews

  • false statements about products

  • hidden advertising

  • manipulative tactics or pressure sales

For affiliates, this means all promotional content must be honest, accurate, and not misleading.

5. Sector-Specific Regulations (iGaming, Finance, Crypto, Health)

Industries such as iGaming, FinTech, Crypto, Healthcare, and Finance have additional advertising rules.

Examples:

  • iGaming: mandatory responsible gambling messages and age restrictions

  • FinTech & Crypto: no guarantees of profits; risks must be clearly disclosed

  • Healthcare: medical claims must be scientifically supported

Affiliates must follow these sector-specific guidelines just like advertisers.

How to Ensure Compliance in Affiliate Marketing

1. Use clear disclosure labels

Affiliates should clearly inform users about commission-based links.

2. Update your Privacy Policy

Include details about:

  • what data is collected

  • why it is collected

  • how tracking technologies are used

  • who receives the data (affiliate networks, advertisers)

3. Configure your cookie banner according to EU laws

Users must be able to:

  • reject cookies

  • accept only selected categories

  • change their preferences at any time

4. Audit affiliate content regularly

Advertisers should monitor how their affiliates promote products.

5. Sign agreements with affiliates

Contracts should define:

  • responsibilities

  • data transfer rules

  • allowed advertising formats

  • disclosure and transparency requirements

Conclusion

Affiliate marketing in the EU offers huge potential but requires strict compliance with data privacy, transparency, and fair advertising regulations. Understanding GDPR, the ePrivacy Directive, and EU consumer protection rules helps businesses avoid legal risks and build long-term user trust.

Following these principles not only ensures legal compliance but also increases the effectiveness of affiliate programs in the competitive European market.