The Australian Competition and Consumer Commission (ACCC) is determined to tackle misleading content in posts as part of a larger effort to protect consumer trust. A recent sweep revealed that 81 percent of online influencers have been posting misleading content, and the fashion, gaming, and technology sectors, among others, were the top offenders. In her role as Acting Chair, Catriona Lowe has cautioned influencers and brands against misleading consumers with undisclosed sponsored posts. She warned that adequate disclosures needed to be made in order to comply with the Australian Consumer Law.
In a review that included Instagram, TikTok, Snapchat, YouTube, Facebook, and Twitch, the ACCC discovered that influencers often presented themselves as relatable and genuine while using vague or confusing language to disclose advertising. As a result, the ACCC plans to provide clear guidelines for online operators to understand their responsibilities under the Australian Consumer Law to disclose advertising in social media posts. “We will 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,” Ms. Lowe said.
In her role as the chair of the Australian Securities and Investments Commission (ASIC), Cathie Armour shared that young people were particularly vulnerable to misleading financial guidance on social media, with 33% of 18- to 21-year-olds following financial influencers. Now, ASIC has in place a law that prohibits misleading and deceptive conduct in relation to financial products and services. Ms. Armour cautioned that influencers who discuss financial products and services online should comply with the law to avoid substantial penalties and protect their followers.
Although the influencer marketing industry grew by 20.4 percent in 2022, according to PQ Media’s Global Influencer Marketing Forecast 2023-2027, it also attracted attention from regulators. As it stands, the Australian influencer marketing industry is valued at $266 million, and content providers make up almost half of the market. Beginnings in 2022, spending on influencer marketing increased by 21.4 percent, reflecting a growing trend globally of more brand marketers investing in macro- and micro-influencers across different social media platforms. PQ Media CEO Patrick Quinn commented that “word-of-mouth marketing” has been replaced by influencer marketing. However, Hello Social Managing Director Sam Kelly has stated that influencer marketing remains effective and is still growing rapidly. He anticipated increased regulation, but suggested that much of the concern came from the influencer marketing industry changing dynamically.