AUS | The Australian Competition and Consumer Commission (ACCC) has provided an update on its ongoing efforts to scrutinise misleading online reviews and influencer endorsements across several industries, including food and beverage. Two short reports released highlight the findings of recent internet sweeps focusing on social media influencers and online reviews.
According to the ACCC Acting Chair Catriona Lowe, the following steps involve developing strong guidelines for online operators, emphasising compliance with the Australian Consumer Law. The ACCC aims to enhance enforcement efforts, urging influencers and businesses to review their practices to build consumer trust.
In the influencer sweep, 81 percent of the 118 social media influencers reviewed were found to be making posts that raised concerns under the Australian Consumer Law. The influencers spanned seven sectors, with varying levels of concern.
The most common issue identified was influencers needing to adequately disclose brand relationships in their posts. Many used vague or confusing language, such as 'sp' and 'spon,' instead of clearly stating 'sponsored.' The ACCC plans to release guidance in early 2024 to remind influencers and businesses of their obligations under the Australian Consumer Law.
In a separate sweep focusing on online reviews, 37 percent of the 137 businesses reviewed were found to have engaged in conduct concerning manipulating reviews for a more favourable impression. The household appliances and electronics, beauty products, and home improvement sectors had the highest proportions of potentially fake or misleading reviews. The ACCC also found businesses using third-party professional reviewers and review removalists to manage their online reputation, some of which encouraged businesses to choose which reviews to display publicly.
Businesses engaging in such practices are considered to breach the Australian Consumer Law. The ACCC plans to continue monitoring businesses offering services to manipulate consumer reviews and will develop educational material for consumers to identify potentially fake or misleading online reviews. The findings from the sweeps will inform the ACCC's education, compliance, and enforcement activities.
"The influencer industry is complex and constantly evolving, with many parties involved that may not be fully aware of good practice. We will engage with the industry on our upcoming guidance to ensure they are informed of their obligations and have no excuses for failing to make adequate disclosures," said Lowe.
