ACCC Provides Update on Scrutiny of Misleading Online Reviews and Influencer Endorsements

ACCC Cracks Down on Misleading Online Reviews and Influencer Endorsements

The Australian Competition and Consumer Commission (ACCC) has released findings from its recent internet sweeps targeting misleading online reviews and influencer endorsements. The reports reveal concerning practices among social media influencers and businesses, prompting the ACCC to take action to protect consumers.

Acting Chair of the ACCC, Catriona Lowe, emphasized the importance of developing clear guidelines for online operators to ensure compliance with the Australian Consumer Law. The ACCC’s influencer sweep uncovered that 81% of the 118 social media influencers reviewed were potentially engaging in misleading advertising practices. Influencers across various sectors, including fashion, gaming, and technology, were found to be making concerning posts that could deceive consumers.

One of the key issues identified was influencers failing to disclose brand relationships in their posts, leading to hidden advertising and deceptive practices. The ACCC will be releasing guidance in early 2024 to remind influencers and businesses of their obligations under the Australian Consumer Law.

In a separate sweep targeting fake or misleading online reviews, the ACCC found that 37% of the 137 businesses reviewed were engaging in concerning conduct. Sectors such as household appliances, beauty products, and home improvement had the highest proportions of potentially fake reviews. The ACCC also identified businesses using third-party review management services to manipulate their online reputation, breaching consumer laws.

Consumers are advised to be cautious of reviews that appear too positive or lack specific details, as they may be fake. The ACCC will continue to monitor businesses and review platforms to ensure compliance with consumer protection laws.

The findings of the ACCC’s sweeps will inform future education, compliance, and enforcement activities to safeguard consumers from misleading advertising and reviews in the digital economy. Influencers and businesses are urged to review their practices and adhere to the guidelines to maintain consumer trust and transparency in online content.