ACCC watchdog to crack down on social media influencers

They’re glamorous, beautiful and filthy rich, but that hasn’t stopped the ACCC from giving social media influencers a stern warning to not skirt the law.

What have Kendall Jenner, Ja Rule and competition watchdog chief Rod Sims got in common?

They all know the power of social media influencers taking payments for spruiking products and not properly declaring it.

And it seems Rod wants to do something about it.

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It is understood the watchdog he controls — the Australian Competition and Consumer Commission — is casting an eye over influencers who take payola without declaring it properly.

Kendall Jenner was recently in Sydney to attend a Tiffany&Co event. Picture: Supplied

Australia’s top social media influencers — who spruik everything from coffee to skin cream and clothes — face increased scrutiny from the competition cop.

It follows US truth in advertising authorities who have been pretty muscular around influencer claims, going as far as sending letters to supermodel Naomi Campbell, actresses Lindsay Lohan and Vanessa Hudgens and others asking if they are properly declaring deals on Instagram.

And Page 13 believes the ACCC is casting a pretty broad net as it looks at the issue.

As revealed this week the increasingly emboldened regulator has struck a deal to work with the Federal Bureau of Investigation to probe competition matters.

It is believed the ACCC has been working with international authorities as it looks at influencers. A report could be out within months.

ACCC Chairman Rod Sims wants to crack down on social media influencers taking payments for spruiking products and not properly declaring it. Picture: John Feder/The Australian.

Ja Rule’s doomed Fyre Fesitval in the US was heavily pumped up by social media influencers.

The move is prompted by the global growth in Instagram influencers hitting fever pitch.

Last year there was a 40 per cent growth in posts by influencers around the world.

You might recall the disastrous Fyre Festival in the US which was a failed “luxury music festival” which turned out to offer packaged sandwiches and tents in a field.

The event — with organisers including Ja Rule — was pumped up by influencers including Jenner and Bella Hadid.

The Aussie government was forced to review its own influencer marketing deals last year after revelations some people pushing government campaigns promoted grog, diet pills and made homophobic slurs.

The laws to this point have been unclear.

From March 1, 2017, influencers have had to clearly label their sponsored content. This is self regulated and following them is voluntary.

So there has to this point been no “yikes” moment for influencers.

But what does have punch is the ACCC’s ability to prosecute for breaches of the Australian Consumer Law.

We watch with interest!