The Australian Competition and Consumer Commission (ACCC) said it would examine more than 100 influencers after several consumers reported to regulators about several endorsements that were deemed misleading.
"The tip-off amount reflects the public's concern about the growing manipulative marketing techniques on social media, which are designed to exploit or pressure consumers into buying goods or services," ACCC Chair Gina Cass-Gottlieb said in a statement as quoted by Rappler, Sunday ( 29/1/2023).
As part of the sweep, the ACCC has begun reviewing Facebook, Instagram, TikTok, Snapchat, YouTube and streaming service Twitch, Cass-Gottlieb said.
The inquiry will target influencers in fashion, cosmetics, food and drink, travel, fitness, parenting, gaming and technology. The ACCC will also check whether advertisers, marketers, brands and social media platforms facilitated any violations.
Individuals who violate Australian consumer laws can be fined up to AUD 2.5 million or Rp 26.6 billion.
The ACCC has conducted a series of investigations as part of its broader Digital Platform Services Investigation, which focuses on the provision of social media services, including sponsored posts and influencer advertising on social media platforms. It is expected to submit the sixth interim report by March 31.
