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INFLUENCERS
Australia’s consumer watchdog clamping down on dodgy influencers
By our News Team | 2023
Consumer commission investigating misleading testimonials and endorsements, as well as failing to disclose affiliations with brands.
Social media influencers in Australia are being investigated by the country’s consumer watchdog in what it calls “a sweep to identify misleading testimonials and endorsements” by influencers.
Apart from a general sweep, the Australian Competition and Consumer Commission (ACCC) is also looking specifically at more than 100 social media personalities mentioned in over 150 tip-offs from the public.
Photo by Ron Lach from Pexels
Most of the tip-offs from members of the public were about influencers in beauty and lifestyle, as well as parenting and fashion. They are being investigated for allegedly failing to disclose their affiliation with the product or company they are promoting.
“The number of tip-offs reflects the community concern about the ever-increasing number of manipulative marketing techniques on social media, designed to exploit or pressure consumers into purchasing goods or services,” ACCC Chairperson, Gina Cass-Gottlieb, said.
“We want to thank the community for letting us know which influencers they believe might not be doing the right thing.
Law firms and industry bodies already acting
“Already, we are hearing some law firms and industry bodies have informed their clients about the ACCC’s sweep, and reminded them of their advertising disclosure requirements,” Cass-Gottlieb added.
As part of the sweep, the ACCC team is reviewing a range of social media platforms including Instagram, TikTok, Snapchat, YouTube and Facebook, as well as livestreaming service Twitch. The sweep is targeting sectors where influencer marketing is particularly widespread including fashion, beauty and cosmetics, food and beverage, travel, health fitness and wellbeing, parenting, gaming and technology.
In conducting the sweep, the ACCC is also considering the role of other parties such as advertisers, marketers, brands and social media platforms in facilitating misconduct.
“With more Australians choosing to shop online, consumers often rely on reviews and testimonials when making purchases, but misleading endorsements can be very harmful,” Cass-Gottlieb said.
“It is important social media influencers are clear if there are any commercial motivations behind their posts. This includes those posts that are incentivised and presented as impartial but are not. The ACCC will not hesitate to take action where we see consumers are at risk of being misled or deceived by a testimonial, and there is potential for significant harm.”
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