Can uou believe everything you read from social media influencers? The ACCC is investigating. – Consumer Trading & Unfair Trading

In early 2023, the Australian Competition and Consumer
Commission (ACCC) conducted an internet sweep of
influencers who were promoting and advertising products on social
media. In December 2023, the ACCC released their findings,
determining and identifying deceptive marketing practices used
across the digital economy.

In the December 2023 publication, the ACCC identified the
following key issues when conducting the sweep with
influencers:

• Not disclosing brand relationships in posts.




• Vaguely or confusingly attempting to disclose brand
  relationships.




• Publishing False or inaccurate statements about a brand,
  product or service

Overall, the ACCC found that 81% of the influencers caught up in
the sweep raised concerns about doing either one or all of the
above. The sectors with the most concerning posts were fashion
influencers, home and parenting influencers and travel and
lifestyle influencers.

With the ACCC planning to release a targeted guidance document
for influencers and businesses involved in influencer advertising
in early 2024, those advertising on social media should be aware of
the potential for a crackdown on transparency for commercial
arrangements in this space. There is the reality of potential
prosecutions.

Social media platforms such as Instagram, TikTok, and Snapchat
allow influencers to market certain lifestyle, beauty and fashion
products directly to consumers, or more accurately, their
“followers.” This directness has allowed social media
marketing to grow exponentially over the past decade. Many
businesses use influencers to market their products to the masses,
however, this growth also comes the watchful eye of the ACCC, and
this latest report highlights a need for more specific regulations
and controls.

Issues with misleading advertising have raised concerns about
possible breaches of the Australian Consumer Law
(ACL), which bans businesses from misleading or
deceiving consumers. With businesses turning to social media
influencers to target (often younger) customers, it is important
that both businesses and influencers are wary of their obligations
to comply with the ACL or risk facing consequences in the
future.

Influencers must be compliant with the ACL. Some suggestions to
ensure this include doing the following:

• Ensuring that promotional posts are labelled accordingly,
  making it clear to consumers that an incentive was received for
  making a post (this stands even if the product was received for
  free).




• Advertising the product “as is” and ensuring no
  misleading claims are made.




• Ensuring that the advertisement is free from deception (for
  example, not vastly altering pictures of the product or making
  deceptive comments about the products quality or purpose).




• Influencers who receive an advertising “script”
  should be wary. Before posting, influencers need to ensure that
  their experience of the product is accurate. Both influencers and
  businesses are responsible for complying with the ACL and ensuring
  that they are advertising responsibly.

Advertising on social media still needs to comply with the ACL,
and it is important to ensure that influencers and businesses are
doing this before stronger guidelines for online advertising in the
digital economy are enacted.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.