More than 100 online content creators have been reviewed in a social media crackdown by the Australian Consumer Commission (ACCC), with more than 80 per cent of those found to have posted "something that raised concerns".
Key points:
- The ACCC has investigated 118 influencers who were dobbed in by consumers
- Of those reviewed, 81 per cent were found to have posted misleading content
- Social media experts say the findings are "really disturbing"
Earlier this year, the ACCC launched a national sweep of influencers posting on online platforms such as Instagram, TikTok, YouTube and Facebook.
During the investigation, 118 influencers were reviewed after being dobbed in by consumers for posting potentially misleading information.
Of those reviewed, the ACCC said 81 per cent were found to have posted something "that raised concerns" — one of the most identified issues being influencers not disclosing brand sponsorships or paid partnerships.
Under Australian consumer law, individuals who disobey advertising regulations can face penalties of up to $2.5 million and companies up to $50 million, for breaches.
The ACCC said no penalties had yet been imposed on those influencers under review.
But it said influencers would be held "just as accountable" as traditional bricks and mortar stores if it were to place a misleading sign in the window.
ACCC acting chair Catriona Lowe said there was a lack of transparency with some influencers.
"Many of the influencers we reviewed did not make adequate disclosures in their posts," Ms Lowe said.
"It appeared they were receiving payment, gifts or other incentives to promote brands, products or services."
The reviewed influencers came from a range of industries with the majority promoting fast fashion labels, closely followed by gaming and technology products and also parenting products.
"Many influencers were formatting their posts to hide their advertising disclosure or make it difficult for consumers to notice it," Ms Lowe said.
The results did not surprise social media podcaster Amy Taeuber, who believed the number of misleading posts remained an issue across the industry.
"I don't know if influencers are really aware that the ACCC has been keeping an eye on them," she said.
"It is really disturbing because we know that influencers have a young and impressionable audience.
"Influencers do make big money pushing products to their audiences so they do really need to take responsibility."
Fake business reviews
The ACCC also investigated 137 businesses and found 37 per cent of those engaged in fake or misleading online reviews.
The sweep found a prevalence of businesses using third-party professional reviewers and removalists tools to manually manage its online reputation.
"Businesses that seek to create fake reviews or edit or remove genuine negative reviews," Ms Lowe said.
"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."
With a number of industries under the microscope the ACCC said it would continue to work with other regulators such as the Australian Securities and Investment Commission and the Therapeutic Goods Administration.
Ms Taeuber suggested the ACCC should introduce an anonymous option for reporting influencers and businesses.
"I often get reached out to by the general public who are angry influencers aren't disclosing advertising," she said.
"The issue is you have to attach your name if you want to make a complaint to the ACCC.
"It does put a lot of people off … maybe the ACCC should change its guidelines."
A spokesperson from ACCC said consumers could make anonymous reports by submitting a form on their website or over the phone.