ACCC To Crackdown On Influencers & Businesses For Misleading Advertising & Dodgy Reviews
The ACCC has provided an update on the next steps in its ongoing work to scrutinise misleading online reviews and influencer endorsements.
Two short reports, outline details of the findings of the ACCC’s recent internet sweeps of social media influencers and online reviews.
“The next steps in our continuing scrutiny of these important parts of the online economy include developing strong guidelines for online operators so they clearly know what we expect, before a renewed focus on enforcement,” ACCC acting chair Catriona Lowe (lead image) said.
“Influencers and businesses need to review their practices and improve compliance with the Australian Consumer Law to ensure consumers can trust the information they find online.”
Of the 118 social media influencers reviewed in the ACCC’s influencer sweep, 81 per cent were found to be making posts that raised concerns under the Australian Consumer Law for potentially misleading advertising.
The sweep reviewed influencers across seven sectors, with most influencers in each sector making concerning posts. This ranged from 96 per cent of fashion influencers reviewed making concerning posts to 73 per cent of gaming and technology influencer posts raising concern.
“Influencers often cultivate an image of themselves as being relatable and genuine, which can create an element of trust with their followers when it comes to recommendations,” Lowe said.
“Based on the findings of our sweep, we are concerned that influencers, brands and advertisers are taking advantage of consumers’ trust through hidden advertising in social media posts by influencers.”
The sweep reviewed influencers on Instagram, TikTok, Snapchat, YouTube, Facebook, and the livestreaming service, Twitch. These influencers were tipped off to the ACCC from consumers.
The majority of influencers reviewed had large followings, however the sweep included some influencers with smaller followings.
The most common issue identified in the sweep was influencers not disclosing brand relationships in their posts.
“Many of the influencers we reviewed did not make adequate disclosures in their posts where it appeared they were receiving payment, gifts or other incentives to promote brands, products or services,” Ms Lowe said.
Another common issue was influencers using vague or confusing language to disclose advertising, such as ‘sp’ and ‘spon’ instead of ‘sponsored’.
“We found that many influencers were formatting their posts to hide their advertising disclosure or make it difficult for consumers to notice it.”
“Under the Australian Consumer Law, businesses must not mislead or deceive consumers. This applies to influencers engaging in trade or commerce, as well as brands and marketers using influencers to advertise online.”
“Influencers and brands may break the law if they do not take reasonable steps to ensure consumers are not misled to believe that sponsored posts are genuine.”
The ACCC will release guidance in early 2024 for influencers and businesses to remind them of their obligations under the Australian Consumer Law to disclose advertising in social media posts.
“The influencer industry is complex and constantly evolving, with many parties involved that may not be fully aware of good practice. 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.”
Influencers are reminded that they should:
- Ensure they clearly disclose a promotional post in a way that is immediately obvious to consumers. This includes instances where the influencer has received free products, tickets or any other gifts or incentives.
- Never make misleading claims about a product. This means that influencers cannot misrepresent their experience with a product.
- Not use manipulative or deceptive advertising practices.
Similarly, businesses should:
- Ensure influencers are aware of their Australian Consumer Law obligations when promoting their products or services.
- Be careful when providing influencers with scripts to follow when making posts. Scripts should never require influencers to misrepresent their experience or views on a product.
“The ACCC will continue to monitor influencers and businesses and where we see continued non-compliance we may take enforcement action,” Lowe said.
Businesses found to be manipulating online reviews
In a separate internet sweep to identify fake or misleading online reviews, the ACCC found that 37 per cent of the 137 businesses reviewed had engaged in concerning conduct.
“Our sweep indicates that some businesses are manipulating online reviews to present a more favourable impression of their business to consumers,” Ms Lowe said.
“Misleading reviews cause considerable harm to consumers who increasingly seek out and rely on online reviews to help them make a purchase.”
The sectors with the highest proportions of potentially fake or misleading online reviews were household appliances and electronics, beauty products, and home improvement and household products and services. Those with the lowest proportion of potentially fake or misleading online reviews were health products, and food and restaurants.
The sweep found a prevalence of businesses using third-party professional reviewers and review removalists as a tool to manage their online reputation. The ACCC reviewed 24 of these businesses that offer services to create fake reviews, remove negative reviews and prevent or edit negative reviews.
The sweep found that some third-party review management services enable review manipulation by encouraging businesses to choose which reviews to publicly display. This includes directing customers with positive experiences to post a public review, while referring those with negative experiences directly to the business.
“Businesses that seek to create fake reviews or edit or remove genuine negative reviews, with the intention of inflating their own ratings, lowering their competitors’ ratings, or hiding genuine negative reviews from the public, are in breach of the Australian Consumer Law,” Ms Lowe said.
“Whilst it may be important to businesses to manage their online reputation, they need to ensure that in doing so they are not misleading consumers.”
“The ACCC will continue to monitor businesses that offer services to facilitate the manipulation of consumer reviews, including the removal, blocking or prevention of legitimate consumer reviews about a product, service or business.”
The sweep also found that most businesses and third-party review platforms were not disclosing whether reviews were incentivised and did not require reviewers to disclose whether they had received a benefit or incentive for submitting a review.
“Businesses that do not disclose incentivised reviews are likely to mislead consumers as it presents incentivised reviews as impartial when they are not,” Ms Lowe said.
“Many businesses reviewed also appear to have fake positive reviews on their website or third-party review platforms, which is in contravention of the law.”
Some signs for consumers that positive reviews may be fake include:
- a spike in highly positive reviews about the business over a short period of time
- multiple reviews written by the same reviewer
- generic reviews without individualised or specific detail about the business or product
- reviews written in similar language as other reviews for the same business or product
- reviews on the business’ website being overwhelmingly positive while on third-party platforms there’s a mix of reviews for the business
“The findings of our online reviews sweep will inform our education, compliance and enforcement activities with businesses, including producing updated guidance material for businesses and review platforms.”
“We will also develop educational material for consumers to help them identify potentially fake or misleading online reviews,” Lowe said.
Latest News
‘The Penny Has Dropped…So We’ve Supercharged How Brands Plan, Book And Measure In One Place’ – News Corp’s Lou Barrett On D_Coded
As a cookie depreciation tsunami slowly approaches, News Corp is sharpening its audience intelligence platform, Intent Connect, with AI tech that enables advanced data collaboration capabilities through planning, booking and measurement. Managing director of client partnerships Lou Barrett tells B&T it’s about future-proofing clients’s digital marketing plans. At last year’s annual D_Coded event, News Corp […]
Advertisers Wasting 42% Of Digital Ad Spend – Next&Co report
With the cost of living crisis biting I think we can all agree that waste is rarely a positive thing...
Introducing New Podcast ‘MID’: Holly Wainwright Rebrands The Mid-Life Experience For Australian Women
The joys of midlife are celebrated in this new podcast. And play it loud if the old eardrums are starting to creak.
TV Ratings (13/05/2024): The Summit Brings In The Eyeballs For Nine
The Summit does the business on its return for Nine. Meanwhile, press photo confirms the importance of headwear.
Snap’s ANZ Agency Lead Ellie Rogers Steps Down Amid Restructure
Ellie Rogers says family was a big part in her next career move. Not so B&T, who only comes to work to avoid ours.
Breast Cancer Foundation NZ’s Awareness Drive ‘The Signs Are Everywhere’ Is B&T’s Campaign Of The Month for April 2024
B&T's ad of the month is both a worthy cause & worthy winner. Even if KFC's Zinger box can feel slightly hard done by.
iSelect Launches New Brand Campaign ‘Save More’ Via Howatson+Company
If there's an agency that's "so hot right now" it's Howatson+Co. And, yes, B&T's unnecessarily bigged-up this new work.
In The Making Expands Into Melbourne
Brisbane PR agency unveils its Melbourne plans. Still adjusting from the pineapple print to the mandatory all black.
It’s Off The Crisper Sale! Introducing KFC’s New Original Crispy Burger Series
This article contains the location to obtain free KFC burgers. Why not send the workie for real world office experience.
Spotlight On Sponsors: Rugby Australia Sign First Dedicated Female Retailer
Don't know your Storms from your Wallaroos? At least you'll be sports sponsor aware with B&T's ongoing series.
Mars Agency Rebrands As Mars United Commerce
Tired of fielding prank calls about nougat & caramel, Mars Agency rebrands to the more long-winded Mars United Commerce.
Azerion Expands Platform With Interactive Video Products
Did your last inter-team marketing brainstorm see 'interactive video' come up more often than not? Read on quickly here.
Inside NGEN: Seven’s Rachael Everett On What We Can Learn From Sport
Were you the wheezy kid that always wagged PE at school? Even more reason not to avoid this lessons-in-sport piece.
Cairns Crocodiles The Work: Changing the World Campaign Presented By Pinterest
Casual dress & motley beards aside, did you join adland to try and change the world? Get tips from those who did here.
Nine And Magnite Strengthen Partnership To Boost 9Now
Nine calls in Magnite to sort out its BVOD programmatic ads. Not before having to switch the plugs from a Type C to a I.
Cricket Australia Appoints Special As Creative Agency For Men & Women’s International Series
Special wins Cricket Australia's creative. Here's hoping they don't get Thomas Keneally to do a poem of 'C'mon Aussie'.
‘Do I want Kids?’ – Laura Henshaw Asks Just That In Latest Podcast
Whether you have kids or not, just know that if you do, it's no lie that they poo, vomit & keep you awake all night.
R/GA Australia Appoints Marie Conley As Executive Strategy Director
Marie Conley returns from the UK after 12 years to take up new role at R/GA. Immediately flabbergasted by house prices.
Zenith Australia Hires Penny Shell As Strategy And Product Lead
Unfortunately B&T refrained from using "the Penny has dropped at Zenith" in this headline. We apologise in advance.
‘It Takes a Village’: New Industry Support Group For Working Parents Launches
Here's a top industry initiative to help adland families. Sadly, no tips on mummy using the F-word after losing a pitch.
Belinda Rowe Unpacks The Forces Of Discrimination That Lead To A Lack Of Diversity In Leadership Roles
With an enviable resume in tow, Belinda Rowe reveals why our boardrooms aren't as eclectic as they really should be.
Marketing From The Cockpit: How Creativity Transformed AB InBev From A Brand Buyer Into A Brand-Building Powerhouse
Do you find American beers watery, insipid & bland? This conference would have been the perfect platform to heckle at.
Cebu Pacific Launches Campaign To Showcase The Philippines As Major Destination For Aussies
In case you needed another reason to visit the Philippines.
Elon Musk’s X Corp Defeats eSafety In Federal Court
Is it just B&T or is Elon Musk slowly morphing into Darth Vader minus the chokehold?
TV Ratings (12/05/2024): Framer Brings Home The Bacon
Lovelorn famers continuing to do good TV numbers. As desperate roof tilers & abattoir employees say "what about us?"
Starcom Pips PHD & Kaimera To Win Gold At Nine’s Agency Games – Check Out All Of The Photos And Coverage Of The Event
Starcom proves the top agency at Nine's Agency Games. Thankfully, no one has asked for urine testing either.
Zitcha Solves In-store Retail Media Measurement With Game Changing Venvee Partnership
Does your in-store retail media measurement resemble a kitchen draw with the screwdrivers & plastic bags? Help is here.
Menulog Delivers More Beef Than Drake and Kendrick Combined, Via Thinkerbell
This "more beef" ad could have also used William & Harry, Oasis, and Bruce Lehrmann & just about everybody.
Komo Tech Announces Landmark Partnership With Fanatics Events To Revolutionise Live Event Experiences
This partnership promises to "revolutionise live event experiences". Hopefully it doesn't alert any sniffer dogs too.
SCA “Disappointed” After ARN and Anchorage Capital Withdraw Takeover Bid
ARN's bid for SCA trips up at the final hurdle. It's also unclear if other states will have to suffer Kyle Sandilands.
About Bloody Time – News.com.au Campaign Secures Win For Endometriosis Sufferers
News.com.au puts aside its passion for 'China set to invade' & overcharging Sydney cafe articles to do some real good.
Fast 10: B&T Talks Brand Rituals, Keeping It Fresh And DE&I With Affinity Media’s Angela Smith
B&T's probing Fast 10 is so quick it's liable for double demerit points on public holidays.
FriendlyJordies Journalist Calls The Police After Allegedly Being Informed Of Gangland Threats By ABC Reporter
What's better than a Walkley Award for journalism? Getting a hit put out on you by a Sydney underworld drug gang.
Two Iconic Brands Seal The Deal With Exclusive Strategic Partnership
Wonderfully, a horse turned up for this press photo. Better again, everyone went home with some manure for their roses.
JCDecaux Wins Tender To Retain Sydney Airport
Shopping at airports has always been a paradox. On one hand there's the duty-free, on the other there's $24 schooners.
QMS Adds Hills Shire To Sydney Network
Forget the hills being alive with the sound of music, as Sydney's Hills district comes alive with new outdoor.