Dishonest Tiktok and Instagram influencers face ACCC crackdown

Dishonest TikTok and Instagram influencers are facing a crackdown by the nation’s consumer watchdog.

The Australian Competition and Consumer Commission has started looking at more than 100 influencers in response to more than 150 tip-offs from consumers. The blitz comes after celebrity influencer Kim Kardashian was slapped with a $US1 million (close to $1.5 million) fine in the US for failing to disclose that she was paid $US250,000 for promoting a cryptocurrency.

ACCC Chair Gina Cass-Gottlieb said most of the tip-offs were about influencers in beauty, lifestyle, parenting and fashion, who had failed to disclose their affiliation with the product or company they were promoting.

“The number of tip-offs reflects the community concern about the ever-increasing number of manipulative marketing techniques on social media, designed to exploit or pressure consumers into purchasing goods or services,” she said.

“Already, we are hearing some law firms and industry bodies have informed their clients about the ACCC’s sweep, and reminded them of their advertising disclosure requirements.”

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The sweep which will run over the coming weeks aims to identify deceptive marketing practices across the digital economy.

The ACCC will review social media platforms including Instagram, TikTok, Snapchat, YouTube and Facebook, and livestreaming service, Twitch. The sweep will target fashion, beauty and cosmetics, food and beverage, travel, health fitness and wellbeing, parenting, gaming and technology.

The ACCC is also considering the role of other parties such as advertisers, marketers, brands and social media platforms in facilitating misconduct.