Advertising ban on health products, cosmetics to hit influencers

New rules will stop influencers promoting certain cosmetic and health products if they are paid for their endorsement or gifted the item.

Influencers will soon be banned from promoting health products if they are paid or incentivised, including receiving gifted products.

Australia’s medicine regulator is cracking down on the advertising of therapeutic goods, with a new Therapeutic Goods Advertising Code, which is currently encouraged but must be followed from July 1.

It makes clearer some important rules to do with testimonials and social media influencers that advertisers found difficult to understand in the previous code.

Multinational law firm King & Wood Mallesons recently broke down the major changes and how they apply to influencers.

Regardless of whether a testimonial is genuine, anyone who receives “valuable consideration” is considered “involved with the production, sale, supply or marketing of the goods”, which prohibits them from making a testimonial.

Influencers cannot be paid or incentivised to promote a therapeutic good such as sunscreen. Picture: iStock

“Valuable consideration” would include non-monetary items such as services, gifts, opportunities or any other incentive, according to the law firm.

The code applies to all therapeutic goods. This includes medicines and medical devices, vitamins and also some cosmetics.

On its website, the Therapeutic Goods Administration use the example of a moisturiser with sunscreen that states it “helps protect skin from the damaging effects of UV radiation”. That would be considered a therapeutic good.

“Advertising of therapeutic goods requires a higher ethical standard than may apply for advertising of ordinary consumer goods because consumers rely on therapeutic goods for their health,” the TGA says of the need for the code.

“It can be difficult for a consumer to determine the appropriateness of a therapeutic good for their particular circumstances, so it is important that promotional material is truthful, balanced and not misleading.”

Emma Mugica, who has 73,000 Instagram followers, said her income will be affected by the changes. Picture: John Feder/The Australian

The TGA has indicated the rules will also apply to posts that are currently live and therefore they will need to be taken down by July 1 if they do not meet the new code.

Speaking to The Australian, influencer Emma Mugica said the changes would cripple her earnings as the majority of her income is supported by paid partnerships with skincare, wellness, vitamin and protein brands.

“Influencer marketing is the number one strategy for most companies. By pulling that away from them, not only are the influencers losing out on their job, but the companies are also losing out on a lot of business,” she told the newspaper.