ACCC to investigate social media influencers false endorsements

• The ACCC will examine more than 100 influencers.
• The watchdog received complaints from consumers.
• The ACCC has started examining different social media platforms.

The competition watchdog in Australia said on Friday that it will investigate if social media influencers had omitted to disclose their relationship with the brands they were endorsing.

The Australian Competition and Consumer Commission (ACCC) announced that it would examine more than 100 influencers after receiving complaints from a number of consumers regarding some recommendations and testimonials they claimed to be false.

“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,” ACCC Chair Gina Cass-Gottlieb said in a statement.

As part of the sweep, the ACCC has started examining Facebook, Instagram, TikTok, Snapchat, YouTube, and Twitch from Meta Platforms Inc., Snap Inc, and Amazon.com Inc., respectively. said Cass-Gottlieb.

Influencers in the fields of fashion, cosmetics, food and drink, travel, fitness, parenting, gaming, and technology will be the focus of the investigation. Additionally, it will investigate any possible facilitation of misbehavior by advertising, marketers, brands, or social media platforms.

Australian consumer law violations might result in fines of up to AUD2.5 million (USD1.78 million).

As part of a larger inquiry into digital platform services, the ACCC has been looking at the supply of social media services, such as sponsored posts and influencer marketing on social media platforms. By March 31st, the sixth interim report is anticipated to be submitted.

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