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ACCC takes aim at misleading social media influencer posts

The Australian competition regulator has begun the sweep to identify misleading testimonials and endorsements by social media influencers based on over 150 tip-offs.

Following its Facebook post last week seeking community feedback, the Australian Competition & Consumer Commission (ACCC) said today that it has started investigating potential advertising misconduct of more than 100 social media influencers.

The watchdog will determine whether these personalities have failed to disclose their affiliation with the product or company they are promoting. Most of those involved were in the beauty, lifestyle, parenting and fashion categories, where influencer marketing is prevalent.

ACCC chair Gina Cass-Gottlieb said: “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.

“Already, we are hearing some law firms and industry bodies have informed their clients about the ACCC’s sweep, and reminded them of their advertising disclosure requirements.”

Platforms subjected to scrutinisation include Facebook, Instagram, Snapchat, TikTok, Twitch and YouTube.

On top of monitoring behaviours from influencers with varied follower numbers, the ACCC will investigate the role of other parties such as advertisers, marketers, brands and social media platforms in facilitating misconduct.

Cass-Gottlieb added: “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.

“This action may include following up misconduct with compliance, education and potential enforcement activities as appropriate.”

The crackdown comes as ACCC continues to investigate the provision of social media services in Australia – including sponsored posts and influencer advertising – in its Digital Platform Service Inquiry. An Interim report will be provided by 31 March 2023.

AANA, the self-regulatory body of the advertising industry, updated its Code of Ethics and Practice in 2021. Enforced by Ad Standards, the updated Code has similar requirements that advertising and marketing should be clearly distinguishable and marked with hashtags #ad, #advert or #paidpartnership.

The latest cases upheld under the code include a SHEIN and Global Ballooning ad, where an influencer failed to disclose being gifted two tickets for a hot air balloon experience.

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