The ACCC is expanding its online fight to the world of influencers, and has announced the beginning of its ‘influencer sweep’.
Previously in a Facebook post, the consumer watchdog put out a call asking if social media users had noticed anything shady going on with an ‘influencer’ on social media. Specifically, the ACCC is looking to track down influencers that aren’t disclosing that their posts are actually ads, and is warning those with large followings to be more up-front about whether they are getting paid for product placement.
Now, a week later, the ACCC has put out a statement on its crackdown, saying that it has received more than 150 tip-offs mentioning more than 100 influencers.
“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 Chair Gina 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.”
The ACCC says that it has begun identifying misleading testimonials and endorsements made by influencers. Most of the tip-offs are within the realm of beauty and lifestyle, as well as parenting and fashion.
In 2023, I don’t need to explain what an influencer is, but it needs to be highlighted that just like with journalism, if there is a monetary element to it, this needs to be disclosed. You’ll notice that mostly on Gizmodo Australia where we include affiliate links or mention that we travelled to a particular event as a guest of that company. It’s a very similar case for influencers – they need to disclose if something is an ad, or at the very least, if it’s not something they have naturally come across, or not a genuine love for a product.
Cass-Gottlieb also made clear that some law firms and industry bodies have informed their influencer clients of the ACCC crackdown, reminding them of disclosure requirements. If advertising is not properly disclosed, the influencer could be fined under Australian Consumer Law. The ACCC says it won’t hesitate to take action, whether it be following up misconduct with compliance or education, or even potential enforcement.
Anyway, this sweep will take place over the coming weeks, as “part of the ACCC’s compliance and enforcement priorities for 2022/23, with the broad aim of identifying deceptive marketing practices across the digital economy,” the post reads.
“As part of the sweep, the ACCC team is reviewing a range of social media platforms including Instagram, TikTok, Snapchat, YouTube and Facebook, and live-streaming 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.”
Once results are analysed, the ACCC will publish them.
This article has been updated since it was originally published.