Australia: Issued ACCC findings following the investigation into social media content creators for misleading advertising practices

On 7 December 2023, the Australian Competition and Consumer Commission (ACCC) issued an update following the investigation into social media content creators for misleading advertising practices. The ACCC noted that 81% of the 118 content creators were found to be making posts raising concerns under the Australian Consumer Law. Issues included inadequate disclosure of brand relationships and the use of vague language for advertising disclosure. Regarding online reviews, 37% of the 137 businesses reviewed engaged in concerning conduct, manipulating reviews to present a more favorable image. In addition, the ACCC identified third-party review management services facilitating review manipulation. The ACCC noted that businesses, including online platforms, have to ensure content creators are informed of their obligations under Australian Consumer Law when they are promoting products or services. Further, businesses should provide scripts compliant with the Law and not contain misrepresentations of content creators' experiences or views. The ACCC will release guidance in 2024 to clarify content creators' and businesses' obligations under the Australian Consumer Law regarding advertising disclosure in social media posts.