The recent report from the consumer watchdog in Australia has highlighted the fact that many social media influencers may be in violation of advertising standards. The report found that 81% of posts from over 100 influencers since January of this year had potential issues with misleading endorsements and testimonials.
This is not only concerning for consumers, but it could also have serious consequences for the influencers in question, as they may face disciplinary action from the Australian Competition and Consumer Commission (ACCC) for breaching advertising standards.
“When endorsements and sponsored posts are not clearly disclosed, it becomes difficult for consumers to make informed decisions regarding their purchases,” ACCC chair Gina Cass-Gottlieb said.
The report questioned whether the vast majority of influencers in Australia were compliant with the requirement to disclose if they were paid, or received free products or services from a brand.
Earlier this year, the ACCC conducted a sweep to detect misleading endorsements and testimonials, and received over 150 consumer alerts. Results showed that even when influencers disclosed their advertising, it was not distinct or visible, such as by placing #ad or #sponsored at the end of extensive captions that necessitate the consumer to ‘click more’ to view.
Of the most alarming posts, 96 percent were from influencers in the fashion industry, primarily consisting of ‘get ready with me’ style posts. Home and parenting (81 percent) and travel influencers (79 percent) had the next largest number of concerning posts.