The activities of influencers are set to come under the oversight of the Italian Communications Authority (AGCOM), it has said.

The rules will initially apply to content creators with more than one million followers.

"The Wild West of influencers is over," AGCOM boss Giacomo Lasorella said.

"We are starting with the big ones, but other influencers will also have to adapt," he told La Repubblica newspaper.

Prominent influencers will face hefty fines if they fail to clearly label brand collaborations or disclose their commercial interests.

The proposed guidelines also aim to protect children, with the new set of regulations including tough penalties for influencers who fail to correctly advertise their collaboration with a brand and their commercial interest, with fines up to €250,000 (£214,450).

AGCOM said in a statement that its measures will concern "commercial communication, and the protection of fundamental rights of people, minors and sporting values."

In the case of product placement, "influencers are required to insert a warning about the advertising nature of the content," the statement said.

Many will see the AGCOM decision as linked to a recent scandal involving top Italian influencer Chiara Ferragni - something Mr Lasorella denied.

In December, Ms Ferragni - who has almost 30 million followers on Instagram - was fined €1.075m for claiming sales of a "designer" pink Christmas cake would help fund a children's hospital in Turin. In reality, the cake's producer had given money to the hospital months before the cake's launch.

In a statement posted to her followers, she said she had made a "mistake in good faith... to link a commercial activity with a charitable one".

Last week, Italian police announced that Ms Ferragni would be formally investigated for fraud over the Christmas cake - or pandoro - case.

Stricter rules for influencers were brought in in other European nations last year.

In June, France passed legislation stating influencers could face jail time if they are found to have broken new promotion regulations - the first time the role was legally defined in Europe.

And in October, the European Commission announced it would step up scrutiny of the business practices and activities of influencers, stating digital content creators would need to "follow fair commercial practices and their followers are entitled to transparent and reliable information."

By Stefano Fasano
BBC News, Rome