Social media influencers must comply with advertising standards, disclosure requirements, and consumer protection laws. In Australia, social media influencers need to understand their obligations under the Australian Consumer Law and various other legal obligations.
This guide is written by our eCommerce lawyer. We provide an overview of the key legal obligations for social media influencers in Australia.
Key Takeaways
Influencers must comply with ACL rules against misleading or deceptive conduct
All paid partnerships must be clearly disclosed
Social media platforms provide tools to support compliance
The ACCC actively monitors influencer content and can issue penalties
Non-compliance can damage your reputation, trust, and legal standing
Legal Framework for Social Media Influencers in Australia
Australian Consumer Law (ACL)
Under the ACL (Schedule 2 of the Competition and Consumer Act 2010), influencers:
Must not mislead or deceive their audience
Must ensure that any promotional claim is truthful
Are subject to investigation and penalties by the ACCC
AANA Code of Ethics
The Australian Association of National Advertisers (AANA) Code of Ethics is the self-regulatory standard for marketing and influencer content. It requires that:
Advertising is clearly distinguishable from organic content
Ads must be honest, fair, and transparent
Disclosures must be made at the time of exposure
Complaints are reviewed by Ad Standards, which can issue rulings that influence public trust and brand partnerships.
Disclosure Rules for Influencers
Mandatory Disclosure Requirements
If you’re receiving payment, gifts, or affiliate commissions, you must:
Use clear and upfront labels like #ad, #sponsored, or Paid Partnership
Avoid vague tags like “#thanks” or “#collab”
Make disclosures visible and unambiguous (not hidden in captions or buried in hashtags)
Platforms like Instagram, Facebook, YouTube, and TikTok have introduced tools to help influencers comply with legal requirements:
- Instagram: Branded content feature to tag paid partnerships
- Facebook: Branded content tool for distinguishing advertisements from organic posts
- YouTube: Built-in disclosure tools for labelling paid promotions
- TikTok: Guidelines for using hashtags like #ad or #sponsored
These tools align with Australian regulatory standards and simplify compliance for influencers.
If your content compares one product or brand to another, make sure it complies with advertising laws, learn more about the rules around comparative advertising.
Ad Standards’ Best Practice Recommendations
Although not enforceable by law, Ad Standards encourages influencers to:
Place disclosures at the beginning of posts or videos
Use simple and consistent language
Apply platform-specific tools (e.g. Instagram’s branded content tag)
Misleading Conduct and Consumer Guarantees
What Counts as Misleading?
Examples of misleading and deceptive conduct include:
Making untrue claims about a product’s effects
Withholding important information (e.g. side effects)
Failing to disclose a commercial relationship
Even if you didn’t intend to mislead, the effect on your audience is what matters under law.
Product Claims Must Align With Consumer Guarantees
Any claim made in promotional content must reflect consumer guarantees under the ACL, such as:
The product is of acceptable quality
The product is fit for purpose
Influencers who make false promises about performance or benefits can be held accountable, alongside the brand.
If you’re promoting vitamins, supplements, or wellness products online, it’s essential to understand the advertising rules for health and wellness products in Australia to avoid breaching TGA or ACCC regulations.
Increased Enforcement by the ACCC
The ACCC has increased enforcement efforts by:
Conducting social media sweeps for misleading influencer content
Investigating disclosure failures
Targeting industries with high consumer risk, like wellness, skincare, and supplements
Influencers found in breach may face:
Legal warnings
Public statements
Penalties or formal action
How Influencers Can Stay Compliant
Follow these practical steps to stay legally compliant and reduce legal risk:
- Always disclose sponsored content clearly and early
- Make sure all claims are truthful and not misleading
- Maintain documentation of your brand or sponsorship agreements
- Avoid exaggerated or unsupported claims (especially for health products)
- Use platform tools to label paid partnerships
- Stay informed on regulatory updates
Frequently Asked Questions (FAQs)
What happens if I don’t disclose a paid promotion?
You may be in breach of the ACL and subject to ACCC investigation or public enforcement action.
For a broader overview of how to stay on the right side of the law across your content, read our guide to legally compliant social media posts.
Are hashtags like #ad or #sponsored enough?
Typically, yes, if they are used clearly, prominently, and early in your content.
Can I be held responsible for misleading product claims made by a brand?
Yes. If you repeat or promote a misleading claim, you may be jointly liable.
Do platforms like Instagram or TikTok enforce Australian law?
Generally, no. Platforms support compliance with their own tools, but you are legally responsible under Australian law.
Is the AiMCO Code of Practice legally binding?
No, the AiMCO Code of Practice is not legally binding. However, it is a best-practice industry guide developed by the Australian Influencer Marketing Council to promote transparency and ethical conduct in influencer marketing.
While not enforced by law, the AiMCO Code aligns closely with:
The Australian Consumer Law (ACL)
The AANA Code of Ethics
Following the AiMCO Code can help influencers and brands meet their legal obligations and reduce the risk of breaching consumer protection laws.
How do I make sure I’m legally compliant?
Stay informed, disclose partnerships transparently, and seek legal advice if unsure.
At Prosper Law, we work with influencers, agencies, and brands to:
Review content and contracts
Ensure compliance with ACL and AANA rules
Protect your business and your reputation
Reach out for a free consultation today!
