As technology advances, there has been a dramatic increase in the number of people using smartphones and social media not only in Mongolia, but also the globe. This provides the advantage of receiving news and information quickly. However, it also comes together with the risks of deception and fraud. One particularly concerning trend is the growing practice of influencers promoting products they’ve never even used, simply because they have a large number of followers. This phenomenon has spread across social media platforms, with influencers advertising various goods and services to their followers. While this is a common trend, it often leads to financial loss, as well as harm to people’s health, appearance, and well-being.
Victims of these scams often express their frustrations on social media, posting complaints, but there is little recourse for holding wrongdoers accountable. In fact, there is a lack of a legal framework to pursue responsibility in these cases. Ideally, influencers should use their considerable reach and influence to act responsibly, with empathy for their followers. However, many have become so focused on monetary gain that they disregard the quality of the products they promote. Some influencers even sell their popular social media pages for profit.
‘Capitalization’ on illness and health issues
A key strategy for many influencers is to tap into common societal concerns, such as weight gain and various health conditions, in order to profit. According to statistics, over 2.5 million people in Mongolia actively use Facebook, 1.2 million use Instagram, and over 100,000 use X (formerly Twitter). This suggests that more than half of the country’s population is engaged in the digital environment. This digital presence represents a lucrative market. Influencers are increasingly using these platforms to promote products that promise quick and miraculous results, such as weight loss supplements, non-cold-inducing drops, and other health-related remedies. Health products, often with unsubstantiated claims, have become a prevalent focus in online marketing. People frequently share testimonials without any scientific proof, claiming that using a product helped them lose weight or cured a condition in just a few days. Some products, like detoxifying herbal teas or diet pills, are promoted with exaggerated benefits, while many influencers share their experiences of miraculous results without providing any credible evidence or professional endorsement. Unverified advice and extreme health recommendations have found a large audience, with some influencers going so far as to promote potentially dangerous, unregulated remedies.
One particularly concerning example is the promotion of anti-obesity drugs. The sale of such products has grown into a significant business within Mongolia, with influencers taking advantage of public interest in weight loss. Many of these influencers are not qualified medical professionals. They often lack knowledge of potential side effects, contraindications, or the proper use of these products, yet continue to endorse them for financial gain. According to the National Center for Maternal and Child Health, fewer than 10 percent of people offering health advice on social media are licensed healthcare professionals. This means that the majority are simply “amateur experts” often using their platforms to promote products based on financial incentives rather than medical knowledge. These individuals rarely face any consequences for their actions, as there are no clear legal guidelines or accountability mechanisms in place.
Are followers a source of money?
As social media platforms continue to grow, a new phenomenon has emerged—the obsession with gaining followers. Some people, desperate for attention or recognition, resort to posting provocative, controversial content, or even explicit photos, in order to grow their follower count. Once they have a significant number of followers, they can monetize their presence in various ways, such as through live streams or sponsored posts. For example, an influencer with over 100,000 followers can earn approximately 1.5 million MNT for just a 30-minute live stream. Posting reels on platforms like Instagram or YouTube can bring in anywhere from 2-4 million MNT. The more followers an influencer has, the more money they can potentially earn. This incentivizes influencers to continuously seek ways to attract attention and expand their follower base, sometimes through increasingly extreme and attention-grabbing tactics.
Using any means to sell products
The practice of using influencers to rapidly sell products and promote brands has become a common business strategy for companies looking to reach a wider audience. However, this trend has shifted the focus away from consumer interests, with some influencers prioritizing sales over their followers’ well-being. In other words, as long as an influencer is able to push a product and generate sales, they often disregard the consequences for their audience. This behavior is compounded by the lack of regulation and oversight in Mongolia’s digital space, making it easier for opportunistic individuals to profit in this way.
One example of this is the online shop “Ekaterina Online Shop”, which has 464,000 followers and has already established a solid following. Last year, the company caused controversy by holding a “Sh**dag Live” event, where discounted products were sold. This live stream created a buzz and drew significant attention. Similarly, other businesses that engage in this type of marketing also hold live-streams to promote and sell their products, often choosing peak online activity hours, such as between 8:00 p.m. and 10:00 p.m. These “live selling” sessions are often accompanied by a small degree of sensationalism to create urgency and boost sales.
Many influencers and public figures have even begun promoting products in exchange for free goods or bartered items, which has led to numerous cases where consumers, after trusting the promotion, end up losing significant amounts of money. One particularly troubling example was a property promotion by a popular actor, B.Battumur, who used a live-stream to advertise residential units in the Montoi Burd housing development. Several buyers paid for apartments but, as of April, the building had not even begun construction. These individuals, some of whom had invested their savings, were left feeling cheated and angry, with some even resorting to hunger strikes to voice their dissatisfaction.
This type of online deception isn’t limited to just one incident or product. For example, last year, another prominent figure used their platform to promote a money-making app, claiming users could turn 400 USD into 1,600 USD. They encouraged their followers—many of whom were young people or acquaintances—to join, often with the tagline, “Try it and see your luck!” Similarly, influencers have used their platforms to promote gambling websites like “1xBET”, targeting young followers and urging them to participate in high-risk betting activities.
Unfortunately, many young people and impressionable followers take the bait, only to end up losing money, damaging their reputations, or even their livelihoods. The impact on their lives is devastating, yet the influencers who profit from these activities rarely face any consequences. This is largely due to the lack of a specific legal framework regulating online influencers and the content they promote. In Mongolia, influencers are held accountable under the broader categories of administrative offenses or criminal law, but there is no specialized law designed to address influencer misconduct.
When asked about this, the Police Department clarified that while consumers can file complaints with the relevant district police, specific laws targeting influencers and their accountability are still lacking. “If any dispute arises in relation to an online influencer, the complaint should be submitted to the local police. Based on the nature of the action, it will then be processed according to the relevant sections of the Law on Infringement or Criminal Code. However, there is no specific law that holds influencers directly accountable as of now,” said a representative from the department.
In contrast, several countries around the world have implemented more defined laws and regulations to tackle online deception and the negative impact of influencers. For example, in the United States, each state has its own laws to address defamation, cyberbullying, and other malicious online behavior, which includes actions by influencers. France passed a law last year aimed at regulating influencer activities and tackling violence on social media platforms. The law penalizes influencers who fail to disclose advertising relationships or hide their commercial intentions, with penalties including up to two years in prison or fines of up to 300,000 EUR. These international examples highlight a growing recognition of the potential harm caused by unregulated influencer activities and the need for stronger protections for consumers. Unfortunately, Mongolia lags behind in this regard. While other nations are proactively implementing laws to protect citizens from online scams and unethical behavior, Mongolia’s legal framework for addressing these issues remains underdeveloped.
Demanding need for regulation
The lack of specific laws governing the behavior of influencers is concerning. As the digital landscape continues to evolve, the need for comprehensive regulation becomes more urgent. Without proper oversight, the rise of unregulated online marketing and influencer-driven sales campaigns will continue to put consumers at risk, potentially leading to financial losses, damage to reputations, and harm to personal well-being.
It is essential for the Mongolian government to develop and enforce clear guidelines for influencers and the companies they represent. Until such laws are put in place, consumers remain vulnerable to exploitation, and the potential for widespread online fraud continues to grow. Regulating this space is crucial not only for consumer protection but also for the integrity of the digital environment in Mongolia.
