Influencer influence can work both ways

You’ve probably heard the term ‘influencer’. Even if you’re a 50-something social media Luddite like me, it’s hard to avoid it.

As someone who is rather cynical about such pomposity, I’d be more inclined to use another single word description. One that starts with ‘w’ and ends ‘nker’. (I may have missed a vowel in there somewhere.)

The thing is, though, despite my disdain for such social media accounts, a lot of them have a lot of followers. And by a lot, I mean a lot. We’re talking Instagram accounts with tens, or even hundreds, of thousands of followers. Even millions in some cases.

And this can lead to some concerning issues.

What if that influence is bad?

Airing such concerns might sound suspiciously like a manifestation of ‘tall poppy syndrome’. And I confess to being somewhat jealous of accounts that are clearly nowhere near as good as mine, but have millions of followers compared to my pithy hundreds.

But putting my envy aside for a moment, the issue is becoming serious. So serious that the Australian Competition and Consumer Commission (ACCC) is now involved.

Most of us associate the ACCC with issues such as price gouging or monopolies. It’s remit, however, extends beyond such concerns. Last week, the ACCC published a media release detailing its ongoing scrutiny of “misleading online reviews and influencer endorsements”.

The release accompanied two reports delivering findings of the ACCC’s recent internet sweeps of social media influencers and online reviews.

In a review of 118 social media influencers, the ACCC found 81 per cent made posts that raised concerns. The concerns were flagged under the Australian Consumer Law for potentially misleading advertising.

ACCC acting chair Catriona Lowe said further action would follow the publication of these revelations.

“The next steps … include developing strong guidelines for online operators so they clearly know what we expect,” she said. This would be followed by “a renewed focus on enforcement”.

“Influencers and businesses need to review their practices and improve compliance with the Australian Consumer Law,” Ms Lowe said. This would help “to ensure consumers can trust the information they find online”.

Is it a futile battle?

One would like to think not, but only time will tell. The exponential increase in influencer accounts through an ever-growing number of platforms makes the ACCC’s task monumental.

But it is doing its best. Its recent sweep was aimed at influencers on Instagram, TikTok, Snapchat, YouTube, Facebook and Twitch. In most cases consumers tipped off the ACCC about these accounts.

Most had large followings and the most common issue identified was influencers not disclosing brand relationships in their posts.

“Many of the influencers we reviewed did not make adequate disclosures in their posts where it appeared they were receiving payment, gifts or other incentives to promote brands, products or services,” Ms Lowe said.

Next steps

The ACCC says it will release guidance for influencers and businesses in early 2024. This guidance will “remind them of their obligations under the Australian Consumer Law to disclose advertising in social media posts”.

Such attempts are to be applauded, but we will have to wait and see if they ultimately have any … ahem … influence.

Are you aware of the concept of influencers? What do you think of the measures being taken by the ACCC? Let us know via the comments section below.

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