ACCC Reports Findings on Social Media Influencers and Online Reviews

The Australian Competition and Consumer Commission (ACCC) has recently conducted internet sweeps of social media influencers and online reviews, uncovering concerning practices in the digital economy. The ACCC reviewed influencers across various platforms, including Instagram, TikTok, Snapchat, YouTube, Facebook, and Twitch, and found that a significant number of influencers were making posts that raised concerns under the Australian Consumer Law for potentially misleading advertising.

In a separate sweep to identify fake or misleading online reviews, the ACCC found that a substantial number of businesses were engaging in concerning conduct, such as using third-party professional reviewers and review removalists to manage their online reputation. The ACCC will be releasing guidance for influencers and businesses to remind them of their obligations under the Australian Consumer Law to disclose advertising in social media posts.

ACCC acting chair Catriona Lowe emphasized the importance of influencers, brands, and advertisers being transparent and honest in their online promotions to ensure consumer trust. The ACCC’s ongoing efforts to scrutinize misleading online reviews and influencer endorsements highlight the need for stronger guidelines and enforcement in the digital space.

For the past two years, the ACCC has been focusing on consumer and fair-trading issues related to deceptive advertising and marketing practices in the digital economy. Industry-led practices and guidelines, such as the Australian Association of National Advertisers’ Code of Ethics and the Australian Influencer Marketing Council’s Code of Practice, aim to set standards for Australian influencer businesses and advertisers.

As the digital landscape continues to evolve, it is crucial for influencers and businesses to review their practices and improve compliance with the Australian Consumer Law to maintain consumer trust in online information. The ACCC’s findings serve as a reminder of the importance of transparency and integrity in online advertising and reviews.