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ACCC examines sponsored advertising by social media influencers

Spheres of Influence. Influencer Marketing.

The Australian Competition and Consumer Commission (ACCC) recently conducted a social media sweep targeting influencers and their sponsored content on platforms such as Instagram, TikTok and YouTube. The purpose of the sweep was to monitor compliance with the Australian Consumer Law (ACL) and ensure influencers are transparent about sponsored content.

The ACCC issued a further warning to brands and businesses that work with social media influencers, reminding them of their responsibilities under the ACL. This includes ensuring influencer marketing campaigns do not mislead consumers and that influencer agreements comply with the law.

The ACCC has taken action against several influencers and brands in the past, including fines for false or misleading claims in sponsored content and for not disclosing commercial relationships. The ACCC is presently looking at 150 tip-offs from more than 100 influencers that may have breached ACL legislation. Many of these influencers are in the beauty and lifestyle niche as well as parenting and fashion.

This social media sweep by the ACCC serves as a reminder of the importance of transparency and accountability in influencer marketing. It also highlights the need for influencers and brands to be responsible and comply with consumer protection laws. The ACCC is committed to ensuring consumers are not misled by influencer marketing and that they have access to accurate information when making purchasing decisions. This social media sweep is just one of the many ways the ACCC is working to protect consumers to maintain a fair and competitive market as per the Digital Platforms Services Inquiry.

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