Influencer hit list: ACCC goes after 100 social media stars over false statements

Aussie social media influencers dobbed in by the public for misleading or deceiving their followers are about to cop a huge reality check from the consumer watchdog.

Aussie influencers have been dobbed in by the public. Picture: AFP

More than 100 Australian social media influencers dobbed in by the public for misleading or deceiving their followers will be targeted in a crackdown by the consumer watchdog.

Influencers on Instagram, TikTok, Snapchat, YouTube, Facebook and live-streaming platform Twitch have been accused of making false statements promoting products, omitting information or failing to disclose sponsored content and will be investigated by the Australian Competition and Consumer Commission (ACCC) in the coming weeks.

The high-profile individuals were identified following a public call-out on Facebook which garnered more than 150 tip-offs in a week, mostly regarding influencers in beauty and lifestyle, as well as parenting and fashion.

Wrongdoers in breach of the Australian Consumer Law could face penalties of up to $2.5m, but Assistant Treasurer Stephen Jones said as a first resort the aim was to work with influencers to ensure they did the right thing in the future.

“If you’re making claims about products on social media or on radio or TV, they’ve got to be true,” he said. “If you’re getting cash for comment, that should be declared – it’s pretty straight forward.”

03/11/2022. Keynote address, The Hon Stephen Jones MP, Assistant Treasurer and Minister for Financial Services . ASIC Annual Forum 2022 held at the Hilton hotel in Sydney. Britta Campion / The Australian

The crackdown is targeting sectors where influencer marketing is particularly widespread, including in fashion, beauty and cosmetics, food and beverage, travel, health, fitness and wellbeing, parenting, and gaming and technology.

It comes after The Daily Telegraph revealed the Australian Taxation Office staff have an arsenal of “data-matching” technologies to help them compare tax returns of “Insta-famous” people with the lifestyle and valuables in their online posts.

Influencers on platforms including Instagram and Facebook will be in the ACCC’s crosshairs. Picture: Nicholas Eagar

The ATO confirmed it was monitoring influencers to ensure their in-kind payments, such as an outfit or product, were subject to the same income tax and GST treatment as normal cash or credit payments.

Mr Jones said consumers had a “right” to know if what they were seeing on social media was part of a paid promotion. “If members of the public are watching things that are not properly declared, ­misleading or untrue they can tip off the ACCC any time,” he said.

Popular Aussie TikTokers are also under investigation. Picture: Getty Images

Despite most consumers being aware influencers received a financial benefit for their work, the ACCC is concerned some advertisers, brands and influencers try to hide the fact from followers, which prevents them making informed choices when buying a product or service.

Mr Jones said the government hoped to see the digital economy “thrive” while still following the same rules as print, TV or radio advertising.

“The same principle should apply when you’re dealing in the online world as if you’re dealing with traditional media or marketplaces,” he said.

Originally published as Influencer hit list: ACCC goes after 100 social media stars over false statements