ACCC to lay down law on influencers, online reviews
Sweeps of influencer posts and businesses’ online reviews found most failed to disclose promotional posts and businesses had manipulated customer reviews.
The ACCC will release “strong, targeted” guidelines early next year for influencers and businesses after two sweeps conducted by the competition watchdog found that potentially misleading posts and manipulated reviews were rampant.
Acting chair Catriona Lowe said the release of the guidelines would be followed by “renewed enforcement action” with “no excuses” for failing to comply with consumer law.
“Influencers and businesses need to review their practices and improve compliance with the Australian Consumer Law to ensure consumers can trust the information they find online,” she said.
“The ACCC will continue to monitor influencers and businesses and where we see continued non-compliance we may take enforcement action.”
The term “influencer” refers to creators who promote brands and services to their social media followers. According to the ACCC, the influencer marketing industry has experienced significant growth and is predicted to reach $US24 billion globally by 2025.
Misleading or deceptive advertising was illegal under consumer law, the ACCC said, and industry practices and guidelines also set standards that required distinguishable advertising.
However, a sweep of influencer social media posts conducted in January flagged 81 per cent as “concerning” for potentially misleading advertising.
The most common issue identified in the sweep, which reviewed influencers across sectors such as fashion, beauty, food, travel, fitness and gaming, was a failure to disclose brand relationships in influencer posts, the ACCC said.
Influencers also used vague or confusing language in sponsored posts to hide their advertising disclosure or make it difficult for consumers to notice it.
According to the ATO, influencers should disclose promotional posts “in a way that is immediately obvious to consumers” and be careful not to make misleading claims, such as misrepresenting their experience using a product.
Similarly, businesses that engage influencers should never provide influencers with scripts that require them to misrepresent their experience or views on a product.
A sweep last year of online reviews also found that 37 per cent of businesses had engaged in “concerning conduct” by manipulating reviews in their favour, such as using third-party professional reviewers or review removalists.
Ms Lowe said the ACCC would develop guidance using findings from the sweeps.
While she acknowledged the influencer industry in particular was “complex and constantly involving”, she said the ACCC would “engage with the industry on our upcoming guidance to ensure they are informed of their obligations and have no excuses for failing to make adequate disclosures”.
The ACCC said it would release a targeted guidance document for influencers and businesses involved in influencer advertising and a document for businesses’ online reviews in early 2024.
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