Person holding a phone with social media applications visible. Source : Pixabay via Pexels.
The Australian Competition and Consumer Commission has begun a sweep to identify misleading endorsements on social media.
The ACCC is targeting influencers who are posting misleading testimonials for brands, particularly in the beauty, lifestyle, parenting, and fashion areas.
The sweep will look at more than 100 influences that were mentioned in over 150 tip-offs given to the Commission by consumers responding to a call for information.
The influencers in question are allegedly posting advertisements for brands without disclosing their affiliation, including any monetary benefits they may be receiving.
ACCC Chair Gina Cass-Gottlieb said the amount of tip-offs the Commission received is telling as to the public’s concern for manipulative social media marketing.
“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.” Ms Cass-Gottlieb said.
“We want to thank the community for letting us know which influencers they believe might not be doing the right thing.
“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.” She said.
Over the coming weeks, the Commission will be conducting the sweep as part of the Compliance and Enforcement Priorities for 2022/2023, seeking to identify deceptive digital marketing practices.
A wide range of platforms are involved in the sweep, including Instagram, TikTok, YouTube, Facebook, and Twitch.
The role of other parties in facilitating misconduct will be considered in the sweep, including advertisers, marketers, brands, and social media platforms.
Ms Cass-Gottlieb said reviews and testimonials from large creators and public figures are often relied on when making online purchases.
“With more Australians choosing to shop online, consumers often rely on reviews and testimonials when making purchases, but misleading endorsements can be very harmful.” Ms 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.
“This action may include following up misconduct with compliance, education, and potential enforcement activities as appropriate.” She said.
The sweep will aim to identify where misleading posts occur and seek to correct the action to allow consumers to make informed choices.
