Regulator targets social media influencers

Celebrities and influencers have a significant role in communicating health messages, particularly so when their own story is compelling or click-bait worthy.

The ACCC has this week started a sweep to identify misleading testimonials and endorsements by social media influencers. It will also look at more than 100 influencers mentioned in over 150 tip-offs from consumers who responded to the ACCC’s Facebook post asking for information.

“We know that celebrity endorsement can change behaviours. A few years ago, Sam Newman’s publicity around his diagnosis and treatment for prostate cancer saw a peak in PSA testing in Australia and particularly in younger men from states and territories with a strong AFL following,” said Associate Professor David Smith, an epidemiologist and health service researcher at The Daffodil Centre, Prostate Cancer stream.

“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.

“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,” Ms Cass-Gottlieb said.

Dr Preeya Alexander, a GP who runs a health website and popular Instagram page, said it can often take a lot of time and effort during a consultation to explain why a health recommendation from a celebrity is not necessarily best practice.

“During the pandemic I think a lot of us were shocked at how powerful influencers with platforms could be in the health space,” she said.

“Whilst many used their platforms to support public health campaigns, many did not and the consequences of that were massive.”

The sweep is being run over the coming weeks as part of the ACCC’s compliance and enforcement priorities for 2022/23, with the broad aim of identifying deceptive marketing practices across the digital economy.

As part of the sweep, the ACCC team is reviewing a range of social media platforms including Instagram, TikTok, Snapchat, YouTube and Facebook, and livestreaming service, Twitch. The sweep is targeting sectors where influencer marketing is particularly widespread including fashion, beauty and cosmetics, food and beverage, travel, health fitness and wellbeing, parenting, gaming and technology.

In conducting the sweep, the ACCC is also considering the role of other parties such as advertisers, marketers, brands and social media platforms in facilitating misconduct.

“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.”

Many consumers are aware that influencers receive a financial benefit for promoting products and services. However, the ACCC remains concerned that influencers, advertisers and brands try to hide this fact from consumers, which prevents them from making informed choices. This can particularly apply to micro influencers with smaller followings, as they can build and maintain a more seemingly authentic relationship with followers to add legitimacy to hidden advertising posts. The ACCC is therefore monitoring a mix of small and larger influencers in the sweep.

This sweep follows a similar initiative carried out in 2022, which focused on identifying misleading online reviews and testimonials posted on business’ websites, their social media pages and third-party review platforms. A report outlining the findings from 2022 will be published in the coming months.

“Online markets need to function well to support the modern economy. Part of that is ensuring consumers have the confidence they need to make more informed purchasing decisions,” Ms Cass-Gottlieb said.

The Therapeutic Goods Administration (TGA) released a social media advertising guide for regulated medicines in March last year and it applies to all influencers.

The ACCC will publish the findings of this sweep once the results have been analysed.

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