ACCC sounds alarm as report finds 81% of influencer posts potentially misleading

Inadequate disclosures of sponsored content by influencers and a lack of advertising transparency are among the key concerns included in the Australian Competition and Consumer Commission’s (ACCC) latest analysis report into the nation’s use of social media services, as it continues to support reforms to protect consumers and businesses.

The sixth interim report of the Digital Platform Services Inquiry, which was released at the end of April 2023, focuses on examining competition and consumer issues associated with social media services in Australia and analyses how social media is used by consumers, businesses, advertisers, and influencers across the country.

The report’s analysis of social media services has identified a range of competition and consumer issues, which can have a significant impact on Australian consumers and businesses, including inadequate disclosures by influencers, a lack of advertising transparency, harm to Australians caused by scams, the significant market power of Meta, data collection and use practices and a lack of effective dispute resolution mechanisms for consumer and business users.

In its report, the ACCC also highlighted the growth of the influencer marketing industry and raised concerns about the inadequate disclosure of sponsored posts by influencers and brands.

In January this year, the ACCC commenced a sweep...