ACCC to Crack Down on Misleading Influencer Endorsements Across Social Media

The Australian consumer watchdog is cracking down on social media influencers who fail to disclose their affiliations with products they promote. The Australian Competition and Consumer Commission (ACCC) received over 150 tip-offs about influencers in beauty, lifestyle, parenting, and fashion who were suspected of not disclosing sponsored content.

ACCC Chair, Gina Cass-Gottlieb, expressed concern about the manipulative marketing techniques used on social media to pressure consumers into purchasing goods or services. The ACCC has initiated a sweep to identify misleading testimonials and endorsements by influencers across platforms like Instagram, TikTok, Snapchat, YouTube, Facebook, and Twitch.

Influencers who post misleading reviews without disclosing their relationship with a product could face penalties of up to $2.5 million under Australian consumer law. The ACCC is committed to taking action to protect consumers from being misled by deceptive endorsements.

Josanne Ryan, the chief executive of the Australian Influencer Marketers Council, stated that the industry is aware of its obligations and is working to educate agencies, brands, and creators. However, some influencers and brands may lack awareness of the need to disclose paid partnerships.

The ACCC will publish the findings of the sweep once analyzed. Influencers and advertisers are also subject to a voluntary code of ethics set out by the Australian Association of National Advertisers, which requires clear and upfront disclosure of sponsored content to the audience.

The crackdown on misleading influencer endorsements aims to ensure transparency and protect consumers from deceptive marketing practices on social media. Stay tuned for updates on this developing story.