ACCC to crack down on misleading influencer endorsements across social media

The Australian Competition and Consumer Commission (ACCC) said it received more than 150 tip-offs after its call-out on Facebook last week, most of them about influencers in beauty, lifestyle, parenting and fashion who tipsters believed had failed to disclose their affiliation with the product or company they were promoting.

Influencers posting misleading reviews that fail to disclose a relationship could be in breach of the Australian consumer law, which can carry penalties of up to $2.5m for individuals.

Cass-Gottlieb said the regulator will not hesitate to take action where consumers are at risk of being misled or deceived by a testimonial and there is the potential for significant harm.

Josanne Ryan, the chief executive of the Australian Influencer Marketers Council (AiMCO), the industry body for influencer marketers, told Guardian Australia last week that most of the industry was aware of its obligations and AiMCO was working to educate agencies, brands and creators.

He said when he brings up paid partnership disclosure with some brands, he has found some were completely unaware about the need to disclose the payment.

The regulator said it will publish the findings of the sweep once the results have been analysed.