Social net worth set to take a hit
AUSTRALIAN social media influencers have just days to remove all sponsored testimonials about everything from skincare and sunscreen to vitamins and vaccines to avoid action from the country’s top medical authority.
New rules about social media advertising come into force on June 30, in a move experts say was “long overdue” and could reduce potential risks to viewers.
But one industry expert warns the new Therapeutic Goods Administration laws could be a “death knell for wellness influencers,” and an industry insider says “talent’s income will be affected”. The regulatory changes, introduced in legally enforceable advertising code, will specifically ban testimonials about health products by social media influencers who have been paid by a brand, either in money or goods.
“This doesn’t prevent influencers from advertising therapeutic goods,” a TGA spokesman said, “however if they have received ‘valuable consideration,’ s (such as) a payment of any kind, to market the goods they cannot promote their own personal s experience w with the product.”
Individuals who failed to comply with the new rules could be hit with infringement notices or face criminal prosecution and fines of up to $888,000 for breaches that could lead to harm or injuries. Social Law Co founder Tegan Boorman, who provides legal advice to the Australian Influencer Marketing Council, said influencers may need to seek advice before posting about health products in future, in addition to auditing their profiles for past breaches.
“Some influencers can still be paid to advertise therapeutic goods, but those advertisements cannot include a testimonial provided by that influencer,” Ms Boorman said.
Born Bred Talent founder Clare Winterbourn (above), who manages the largest roster of Australian TikTok and Instagram influencers, said the rule changes were “really positive” and could help clean up the industry.
“It will hit wellness influencers hard,” Ms Winterbourn said. “I definitely think a lot of our talent’s income will be affected but I believe the changes will have a positive effect.”
Digital marketing expert Meg Coffey said the new rules could be a “death knell for wellness influencers if there’s a crackdown,” but it could ultimately protect consumers.
“We’ve long been influenced by testimonials and word-of-mouth but buying a pair of jeans is very different to taking a health supplement,” Ms Coffey said.
Murdoch University social media researcher Dr Catherine Archer said the booming influencer industry, estimated to be worth $150bn worldwide, had become a “powerful” force in advertising in which regulations in Australia were “long overdue”.
She pointed to the example of Belle Gibson, who amassed more than three million followers on Instagram before her lies about treating cancer with fresh food were exposed.