Social media influencers and online advertising – it's not all for the Gram
ACCC releases its compliance and enforcement priorities for 2022/23
Have you ever engaged a social media influencer to help promote your products?
Or have you advertised your products as 'environmentally friendly and sustainable'?
If your business has an online presence or participates in online advertising, now is the time to make sure your practices comply with Australian competition and consumer laws.
The ACCC has released its compliance and enforcement priorities for 2022/23 and it is focused on taking enforcement action against businesses participating in "manipulative techniques to exploit or pressure [consumers], and other practices that seek to distort or disregard their consumer choice in the digital economy" says ACCC Chair Rod Sims.
ACCC compliance and enforcement priorities for 2022/23
The ACCC compliance and enforcement priorities for 2022/23 include:
manipulative or deceptive advertising in the digital economy;
environmental claims and sustainability; and
disruptions to global and domestic supply chains.
Some manipulative techniques the ACCC will be targeting include:
social media influencers and comparison websites who do not disclose commercial relationships (including paid promotions);
false online reviews and search results;
false promotions of environmental or green credentials;
false scarcity reminders (eg low-stock warnings);
false sales countdown timers;
targeted advertising using consumers' own data to exploit their individual characteristics;
pre-selected add-ons; and
design interfaces that discourage consumer from unsubscribing.
The competition watchdog will also be focused on issues arising in global and domestic supply chains, particularly where COVID-19 has disrupted those supply chains. The ACCC Chairman confirmed that "Where [the ACCC] has evidence of businesses taking advantage of the situation to fix prices or share markets, [the ACCC] will take appropriate action."
The full list of the ACCC's compliance and enforcement priorities can be accessed here.
What should you do before the ACCC comes knocking?
If your business has an online presence or participates in online advertising to consumers, it is imperative that your practices comply with competition and consumer laws in Australia as soon as possible.
Similarly, if your business is involved in any global or domestic supply chain in any industry (this includes fresh food, groceries, clothing and medications) - it is critical that you have an effective legal risk management framework and compliance culture in your business in relation to competition and consumer laws.
Failing to comply with Australian competition and consumer laws has serious consequences for businesses and directors, including: litigation, civil and criminal prosecution, class action, disciplinary action and damage to brand reputation.
How can we help?
If you need help to review and update your compliance with Australian competition and consumer laws, or if you have already received communication from the ACCC in relation to your practices, it is imperative you obtain advice urgently.
If you require assistance or advice regarding your compliance obligations or any communication you receive from a regulator or enforcement body, please do not hesitate to contact Suzanne Howari or Peter Wright.
The material in this article was correct at the time of publication and has been prepared for information purposes only. It should not be taken to be specific advice or be used in decision-making. All readers are advised to undertake their own research or to seek professional advice to keep abreast of any reforms and developments in the law. Brown Wright Stein Lawyers excludes all liability relating to relying on the information and ideas contained in this article.
contact
Suzanne howari
Senior Associate
E sxh@bwslawyers.com.au
P 02 9394 1072
Peter wright
Partner
E pjw@bwslawyers.com.au
P 02 9394 1090