Watchdog cracks down on scheming social media influencers

Watchdog cracks down on scheming social media influencers

The consumer watchdog has started cracking down on social media influencers who deceive their followers as part of an effort to promote greater transparency.

Over a hundrer influencers have been identified for investigation in response to more than 150 tip-offs that the Australian Competition and Consumer Commission (ACCC) has received.

The watchdog encouraged individuals to point out any influencers who were not making it clear when their posts were paid advertisements.

Influencers in the fashion and parenting niches were also likely to come under examination. The beauty and lifestyle industries were recognized as having the most problematic posts.

Both well-known and emerging influencers will be investigated as well.

Gina Cass-Gottlieb, chair of the ACCC, expressed alarm about the volume of tip-offs and claimed that deceptive marketing tactics were becoming more prevalent.

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Cass-Gottlieb explained to ABC’s RN that because influencer endorsements are relatable and appear to be from regular people, customers are drawn to them.

“We find with online purchasing that people take a lot of note and are persuaded by influencers.”

She urged influencers to be transparent about any financial compensation they may receive for their posts.

“We want them to be honest, we want them to be upfront.”

The watchdog is keeping an eye on Instagram, TikTok, Snapchat, YouTube, Facebook, and live-streaming platform Twitch.

The investigation is focusing on industries where influencer marketing is prevalent, such as fashion, beauty and cosmetics, food and drink, travel, health, fitness and wellbeing, parenting, gaming and technology.

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With AAP.

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Jaw de Guzman
Jaw de Guzman
Jaw de Guzman is the content producer for Comms Room, a knowledge platform and website aimed at assisting the communications industry and its professionals.