Influencer marketing has continued as widely used form of advertising in recent years, with companies and brands leveraging the reach and influence of creators and influencers to promote their products and services. Influencer marketing can be a highly effective way to reach consumers, but it also poses some risks and challenges, particularly when it comes to disclosing sponsored content.
The ACCC Takes Action Against Misleading Influencer Marketing
The Australian Competition and Consumer Commission (ACCC) is cracking down on influencer marketing in an effort to ensure that consumers are not misled by sponsored content. In recent years, the ACCC has taken action against several influencers and brands for engaging in deceptive and misleading influencer marketing practices.
In a recent statement, ACCC has announced they have taken particular a interest in influencer marketing practices that involve the promotion of products without adequate disclosure of sponsored content. This can include failing to clearly label sponsored posts as advertisements, failing to disclose the nature of the relationship between the influencer and the brand, and using influencer marketing to promote products that are illegal or banned in Australia.
What You Need to Know about Influencer Marketing and the ACCC
If you are an influencer or a brand looking to engage in influencer marketing, it’s important to be aware of the guidelines set forth by the ACCC. To ensure compliance, influencers and brands should:
- Clearly label sponsored content as advertisements
- Disclose the nature of the relationship between the influencer and the brand
- Refrain from promoting products that are illegal or banned in Australia
- Ensure that any claims made in sponsored content are accurate and not misleading
The ATO Cracks Down on Influencer Tax Compliance
It’s not just the ACCC that influencers and brands need to be aware of, the Australian Tax Office (ATO) is also cracking down on influencer tax compliance. According to recent reports, the ATO is actively pursuing influencers who are not declaring gifted products on their income tax return.
Influencer marketing is subject to consumer protection and tax laws, and it’s important for influencers, creators and brands to be aware of these requirements and take steps to ensure compliance. By being transparent and accurate, influencer marketing can continue to be a successful and effective form of advertising for all involved.