Australian Business Fined for Influencer Misconduct

Tomsem Consolidated, trading as PhotobookShop, has been fined nearly $40,000 by the Australian Competition and Consumer Commission (ACCC) for instructing social media influencers to conceal their paid endorsements in product reviews. This penalty marks a significant enforcement action, being the first of its kind against an Australian business for influencer-related non-disclosure.

The Guardian

Between August 2024 and September 2025, PhotobookShop commissioned influencers to review its products, including photo books and canvases. The ACCC found that on 107 occasions, the company directed influencers not to disclose that they were compensated with free products valued between $50 and $400. A written agreement from PhotobookShop explicitly instructed influencers to avoid mentioning that the products were free or sponsored.

The Guardian

One influencer's review, which did not disclose the compensation, led to the ACCC's infringement notice. The ACCC stated that this misrepresentation could mislead consumers into believing the reviews were genuine and unpaid. Catriona Lowe, ACCC deputy chair, emphasized that businesses must not mislead consumers, asserting that the same consumer laws apply to digital marketing as they do to traditional advertising mediums.

The Guardian

In addition to the non-disclosure issue, the ACCC found that PhotobookShop had substantially edited a review to remove negative feedback. The original review mentioned some difficulties with the company's AI assistant tool, but the edited version omitted these details, presenting a more favorable view without acknowledging the changes made. Lowe noted that such misleading reviews could influence consumer purchasing decisions.

The Guardian

The ACCC has been increasingly scrutinizing influencer marketing practices. In a 2023 sweep across various social media platforms, including Instagram and TikTok, the regulator found that 37% of online reviews assessed raised concerns regarding compliance with consumer laws. Following this case, the ACCC plans to release guidelines to clarify influencers' obligations under Australian consumer law.

The Guardian

The ACCC's actions reflect a broader commitment to ensuring transparency in influencer marketing. Lowe stated, “Influencers can be a powerful marketing tool, and the Australian consumer law applies as much to the digital world as it does to bricks and mortar retailers.” PhotobookShop has since updated its influencer agreements to clearly indicate when content is sponsored or involves gifted products.

The Guardian

While the ACCC's enforcement action has been welcomed by consumer advocates, some industry representatives argue that the guidelines may impose excessive restrictions on influencer marketing, potentially stifling creativity and spontaneity in social media content creation.

The Guardian

As the ACCC prepares to release new guidelines for influencers, the marketing landscape in Australia may see significant changes aimed at enhancing transparency and consumer protection in digital advertising.

The Guardian