Australia regulator to probe social media influencers for false endorsements | Tech News

Australia regulator to probe social media influencers for false endorsements

ACCC said it would look at more than 100 influencers after several consumers informed the regulator about some endorsements and testimonials which they said were misleading.

By:REUTERS
| Updated on: Jan 28 2023, 10:57 IST
Instagram users can share stories on Close Friends list; check steps here
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2/5 It can be noted that people on your Close Friends list will know they are on it, but they can't see who else is on the list. Only you can see your close friends list, and no one can request to be added. (AP)
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As part of the sweep, ACCC has begun reviewing Meta Platforms Inc's Facebook and Instagram, TikTok, Snap Inc's Snapchat, Alphabet Inc's YouTube and Amazon's Twitch. (Unsplash)

Australia's competition regulator said on Friday it would check whether influencers on social media platforms had failed to disclose their affiliation with the brands they were promoting.

The Australian Competition and Consumer Commission (ACCC) said it would look at more than 100 influencers after several consumers informed the regulator about some endorsements and testimonials which they said were misleading.

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"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 in a statement.

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As part of the sweep, ACCC has begun reviewing Meta Platforms Inc's Facebook and Instagram, TikTok, Snap Inc's Snapchat, Alphabet Inc's YouTube and Amazon. com Inc's streaming service Twitch, Cass-Gottlieb said.

The probe will target influencers in fashion, cosmetics, food and beverage, travel, fitness, parenting, gaming and technology. It will also check if advertisers, marketers, brands and social media platforms are facilitating any misconduct.

Individuals who breach Australian consumer laws could be fined up to A$2.5 million ($1.78 million).

The ACCC has been conducting a series of investigations as part of a broader Digital Platform Services Inquiry, focused on the provision of social media services, including sponsored posts and influencer advertising on social media platforms. It is expected to submit its sixth interim report by March 31.

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First Published Date: 28 Jan, 10:44 IST
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