The ACCC (Australian Competition & Consumer Commission) this week started an investigation into the influencer marketing sector to identify misleading and deceptive behaviour..
Australian actor and TikTok star Maddy MacRae says most creators are aware of the disclosure requirements when a post is paid for by a brand.
"However, likely not the full legal repercussions if we don’t. Even I’m not sure what would happen if I didn’t disclose it properly," she told AdNews.
"We definitely know we have to say the post is an ad or paid partnership when doing sponsored content. However, I think it can be confusing on how it needs to be disclosed and when.
“With a number of different deliverables, it can often be confusing for some if it needs to be on every single Instagram story, or just the first. I prefer to play it safe, and disclose everything I can. It will be good to learn what is considered clear and prominent labelling for everyone so it's consistent across the board.
“I had not done any brand partnerships until I was with a management agency, who informed me of the need for disclosing paid work. However, I imagine that a lot of creators that are self managed or freelance may not know this especially if brands don't include it in the brief.”
MacRae says that brands and agencies do ensure that influencers are aware of the disclosure requirements when entering a paid partnership.
“It is very clearly stated in most briefs sent by the marketing agencies or brands that we have to disclose it is a paid partnership," MacRae says.
"In the deliverable requirements most remind us to use the appropriate hashtags and to turn on the paid partnership toggle when posting.
“Although, when working with international brands where the rules are different, there is sometimes push back and they discourage creators from disclosing paid partnerships. It’s really important that creators know the rules so they are able to make educated decisions.”
She went on to address the areas in which the ACCC will be focussing on, including making incorrect statements or creating a false impression of a product, service or brand.
“This is so important! You can’t lie to your audience. They have trust in you so if you’re promoting a product or service, creators should be researching the brand and trialling the product before agreeing to promote it.
“This is very important to me when I’m considering working with a brand cause I want to make sure I’m correctly advertising it. If I feel like I don’t know enough about the product, I’ll often say no to the partnership so that this doesn’t happen.”
She also believes that investigating the failing to clearly disclose advertising or sponsorship - including where influencers have labelled posts as advertisements, but this labelling is unclear or not prominent - is a good clarification on how creators should disclose paid partnerships.
“I think it will be good to have clarification on exactly how creators should disclose a paid partnership.
“We have been presented with a few ways to do it, hashtags or writing paid partnership in the caption or just popping “AD” at the start of the caption, but maybe these regulations will clarify what it means to have clear and prominent labelling.”
When asked how she sees the sweep affecting creators. MacRae said: “I think it will mean more creators will ensure they are working with the right brands for the right reasons and to be transparent with their audiences.
“I don’t think it will affect creators negatively (unless they are doing the wrong thing of course!). I feel as though a lot of audiences really appreciate the transparency, so if anything some creators may find themselves building a stronger relationship with their audience.”
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