How Businesses and Influencers Should Disclose Paid Social Posts
Working with influencers can put your brand in front of a ready audience. It can also land you in trouble if the posts hide the fact that they are paid. Australia’s consumer watchdog has made it clear that brands have a part to play in getting this right.
The Australian Competition and Consumer Commission (ACCC) reviewed influencer posts across the major platforms and found widespread problems. This post explains what it found and what businesses should do. It also covers how to word and place a disclosure so followers actually see it.
Why disclosure matters under consumer law
The Australian Consumer Law bans misleading or deceptive conduct. The ACCC says this applies to influencers who are in business and to the brands and marketers that use them. A post that looks like an honest personal opinion but is really paid promotion can mislead followers. That is why the commercial link needs to be obvious.
The industry has its own standards as well. The ACCC notes that the AANA Code of Ethics requires advertising to be clearly distinguishable as advertising. Ad Standards applies that code to businesses rather than to influencers. The Australian Influencer Marketing Council also publishes disclosure guidance for influencers.
What the ACCC sweep found
In early 2023 the ACCC reviewed 118 influencer accounts across Instagram, TikTok, Snapchat, YouTube, Facebook and Twitch. It found that 81% of those influencers had posts that raised concerns. The results were published in December 2023 in a report on influencer testimonials and endorsements. Many of the accounts were identified through tips from the public.
Fashion had the highest rate of concerning posts at 96%. Home and parenting came next at 81%, then travel and lifestyle at 79%. Even the lowest sector, gaming and technology, sat at 73%. In other words, the issue was spread right across the market.
The most common problems
Not disclosing a brand relationship at all was the biggest issue. Next came vague or confusing disclosures that followers could easily miss. Some posts also made false or inaccurate statements about products. In its media release on influencers and misleading advertising, the ACCC said it was concerned about consumers’ trust being taken advantage of through hidden advertising.
What a clear disclosure looks like
The ACCC does not publish one approved form of words. It does list labels that are unlikely to be clear enough. These include “sp”, “spon”, “sponcon”, “collab”, “creativepartner” and “ambassador”. Plain wording that says a post is an ad, or is sponsored by a named brand, is far easier for followers to understand.
Placement matters just as much as wording. The ACCC flagged several habits that make a disclosure easy to miss. Check each of these against any brief you send to an influencer.
- Putting the disclosure at the end of a long caption, behind a “more” link.
- Mentioning it out loud only at the end of a long video.
- Burying it among hashtags or links.
- Disclosing only in a video description and not in the video itself.
- Using small, faint or low contrast text.
- Disclosing in one post about a brand but not in later posts.
- Disclosing only in the account bio.
Platforms also offer their own tools to label paid partnerships. The ACCC listed not using these tools consistently as a concern. Using the platform label as well as clear wording in the post gives followers two chances to notice.
Gifts and free products count
A payment is not the only thing that creates a commercial relationship. The ACCC says influencers should disclose when they receive free products, tickets or other gifts. Claiming to have bought an item that was actually gifted was identified as misleading. Gifted, discounted or incentivised trips should also be disclosed.
What brands and businesses should do
The ACCC says businesses should make sure influencers understand their obligations under the Australian Consumer Law. Scripts deserve extra care. The ACCC tells businesses to be careful when giving influencers a script to follow. The ACCC says the law also applies to the brands and marketers that use influencers.
Put disclosure requirements in writing in every agreement. Spell out the wording and where it should sit in the post or video. Check the posts once they go live, and ask for fixes quickly if something is missing. This fits the core principles of ethical marketing that any campaign should follow.
Influencer posts often run alongside paid search campaigns. Each channel has its own rules, but honesty with the customer is the common thread. If you also run search ads, our post on Google AdWords statistics and best practice covers that side of your marketing. Keeping the message consistent across channels also builds trust.
Regulated industries
Some industries carry extra rules. The ACCC notes that ASIC, the TGA and AHPRA also regulate influencer conduct in their own areas. Those bodies cover financial services, therapeutic goods and registered health practitioners. Check the relevant regulator’s guidance before you run a campaign in those fields.
Linking social posts to your website
Most influencer campaigns send followers somewhere, often to a product page. That page should match what the influencer said, including prices and any conditions. The ACCC lists promo codes and referral links as possible signs of a commercial arrangement. So a post with a discount code should carry a clear disclosure.
For retailers, social posts often lead straight to an online store. Our piece on whether online retail is a threat or an opportunity looks at that wider picture. Once the clicks arrive, a fast site matters too, and our post on cloud hosting and Google rankings covers the technical side.
Frequently asked questions
Is a short “ad” label enough?
The ACCC has not set approved wording. A clear word such as “ad” or “advertisement” placed early in the post is easier to see than a vague label. The ACCC did flag a white label on a white background as a problem, so readability matters too.
Who is responsible, the brand or the influencer?
Both have a part to play. Influencers should disclose their commercial relationships. The ACCC says the Australian Consumer Law also applies to brands and marketers that use influencers to advertise.
Do gifted products need a disclosure?
Yes, according to the ACCC. It says influencers should disclose free products, tickets or other gifts. Including gifted items in “favourite” lists without saying so was flagged as a concern.
Does a note in the bio cover every post?
No. The ACCC listed disclosing only in an account bio as a problem. Each sponsored post needs its own clear disclosure.
This article is general information about Australian law and is not legal advice. Laws, penalties and processes change, and other rules can apply depending on your industry and your state or territory. Speak with a qualified lawyer about your own situation.
