Hashtag Busted: ACCC Fines Business Over Hidden Influencer Deals

The consumer watchdog has fined a business over hidden influencer deals, sending a warning to brands using online personalities to promote their products.

The Australian Competition and Consumer Commission (ACCC) hit Melbourne-based online retailer PhotobookShop with a $39,600 penalty over allegedly misleading Instagram reviews that were anything but real.

The investigation began after an influencer reported concerns about the company’s conduct to the ACCC.

The Allegations

Tomsem Consolidated Pty Ltd, trading as PhotobookShop, ran a gifting programme between August 2024 and September 2025.

On 107 occasions, it provided influencers with free products worth between $50 and $400 in exchange for social media reviews.

But the dodgy part was a term in the contract itself, which told influencers:

* Note: "Please ensure your videos do not mention that the product is free, or sponsored, or that PhotobookShop contacted you to create them in exchange for products."

Put simply, the company was asking influencers to act as if the deal never existed.

At least one influencer complied, posting a review on Instagram without disclosing that they had received freebies or that they had been commissioned by PhotobookShop.

The ACCC issued an infringement notice, alleging this created a false impression of an organic, independent endorsement.  

A second infringement notice was then issued after PhotobookShop edited an influencer's video review of its AI photobook tool, removing negative comments that described the product as “fiddly” and “confusing” to use.

What remained was a glowing review with no disclosure that the original was altered.

The ACCC alleges the edited version changed the overall impression given by the influencer's review.

It is important to note that the ACCC can issue an infringement notice where it has reasonable grounds to believe a person or business has contravened certain consumer protection provisions under the ACL.

The payment of a penalty specified in an infringement notice is not an admission of a contravention of the ACL.

PhotobookShop has paid the penalty but has not admitted wrongdoing.

The Law

Section 18 of the ACL provides that a person must not, in trade or commerce, engage in conduct that is misleading or deceptive, or is likely to mislead or deceive.

A person includes a natural person, a company, a trust, an association, a charity, an agency, a partnership, an organisation, or any other form of corporate entity.

Engaging in conduct includes making representations, statements, predictions and advice.

Section 29(1)(e) of the ACL prohibits false or misleading representations that claim to be a testimonial by any person relating to goods or services.

This covers fake and fictitious testimonials where the person who claims to have made the testimonial is fabricated or pretended to be someone else.

Section 29(1)(f) prohibits false or misleading representations concerning testimonials about goods or services.

This covers genuine testimonials where the content is false, misrepresented or misquoted.

These obligations apply not only to influencers themselves but to the businesses that engage them.

ACCC Deputy Chair Catriona Lowe says, “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.”

What's the Big Deal About Freebies for Fake Reviews?

In the age of online shopping, Instagram marketing and celebrity endorsements, consumers are increasingly reliant on social media reviews to decide what they buy.

When those reviews are secretly paid for, or edited to hide negative feedback, the public is being deceived about the products they are spending money on.

The penalty aims to deter dishonest practices in influencer marketing and put the industry on notice.

Consumer confidence depends on transparency. If a review is sponsored, people have a right to know. If a review has been altered, people have a right to know that too.

Without honest dealings, the public cannot make informed buying decisions. That is the harm the ACCC is trying to stamp out.

Businesses engaging influencers should have clear contracts that require proper disclosure, should not instruct creators to conceal commercial arrangements, and should not alter reviews without transparency.

Doing so is not just poor practice, it is a potential consumer law breach.

Influencers, Take Note!

If you are an influencer and you have been gifted a product, been paid a fee, or have any commercial relationship with a brand, make sure your captions clearly disclose the deal.

Platforms such as Instagram now have business tools and paid partnership labels for posts.

Hashtags such as #ad, #advert and #sponsored must be clearly displayed, not buried or camouflaged.

Information in business posts on social media must be truthful and accurate in its claims.

With the ACCC cracking down, it is not just individual influencers being targeted, but the agencies, brands and businesses behind them.

When consumer trust is exploited through doctored reviews, hidden deals and lies about what is really behind a post, manipulative and deceptive advertising takes over the online marketplace and damages fair business practices.

The content in this Article is intended only to provide a summary and general overview on matters of interest. It is not intended to be comprehensive nor does it constitute legal advice. It should not be relied upon as such. You should seek legal or other professional advice before acting or relying on any of the content.

ABOUT THE AUTHOR

Naomi Shivaraman  has been an award winning journalist and producer for 25 years. She joined BlackBay as the team’s Legal Affairs Strategist, a role created to utilise her combined legal and media strategy skills, helping clients and stakeholders navigate the court of public opinion.

Not only does she assist the team in a paralegal capacity on complex litigation matters, but she also provides reputational, media and communications counsel. For the past few years, Naomi has combined her law studies with a full-time career. Naomi will finish her Bachelor of Laws degree at Macquarie University next year.