Posted by Elizabeth Gore-Jones
on 25 January 2024
The ACCC released a report that showed that 81% of social media influencers were making posts that may be infringing the Australian Consumer Law for misleading advertising.
It also found that 37% of the businesses it reviewed had engaged in conduct relating to fake or misleading online reviews.
The obligation not to engage in misleading or deceptive conduct applies to influencers and businesses alike.
The main way that social media influencers may be infringing this law is by failing to disclose or being cagey about their relationship with a business or brand.
Another concern identified by the ACCC related to “subscription traps” where free trials were promoted requiring a customer to provide credit or debit card details upfront to access the free trial and then have a difficult cancellation policy or procedure.
If you are an influencer, you should:
1. Make it clear that you have an arrangement with the business, brand or product;
2. Not make any misleading claims about the business, brand or product; and
3. Not use any deceptive advertising practices.
If you are a business that engages social media influencers, you need to ensure that your influencers are aware of their obligations and, if you provide scripts for the influencer to follow, you should not be requiring them to make any misrepresentations.
For expert legal guidance on compliance with the Australian Consumer Law regarding misleading advertising and online reviews, contact us.
