For the first time, the Australian Competition and Consumer Commission (ACCC) has penalised a business for using influencers without disclosing a payment or gift.
Tomsem Consolidated Pty Ltd, trading under PhotoBookShop, was hit with two infringement notices, resulting in $39,600 in penalties, by the consumer watchdog after an influencer reported concerns about a written agreement they were sent that requested they not disclose they had been gifted a product in exchange for a review.
“Businesses must not mislead consumers by posting misleading reviews or failing to disclose when an influencer has been paid to create social media content, whether that payment is free, gifted products or services, or money,” ACCC Deputy Chair Catriona Lowe said.
“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.”
An investigation by ACCC found that between August 2024 and September 2025, the online photobook business commissioned influencers to produce social media reviews, and on 107 occasions instructed them not to disclose that they’d been paid with free products. As a result, an influencer created a review without disclosing that it was commissioned by PhotobookShop or that the business had given her a gift,
The products were valued at $50 to $400.
“Please ensure that your videos do not mention that the product is free, sponsored, or that PhotobookShop contacted you to create them in exchange for products,” a screenshot of a written agreement from PhotobookShop, shared by the ACCC, reads.
The watchdog issued the infringement for posting the influencer’s review to its Instagram page without disclosing that it had paid for the review by providing them a free product as a “gift”. By doing this, the ACC alleges the business had misled consumers that the review was organic when it wasn’t.
The business copped a second infringement after it allegedly edited an influencer’s review and posted it to its Instagram page.
According to the watchdog, PhotobookShop commissioned an influencer to produce a video review of its hardcover book. In the original review, the influencer noted how the business’ AI assistant tool was “fiddly” and “a bit confusing”. However, PhotobookShop edited the video to remove the negative feedback and kept everything that was positive.
Per the ACCC, the influencer originally said, “I used their AI assistant tool to help me make it [the hard-cover photobook] and while it was a bit fiddly, it did help the overall experience, and then I got the chance to modify anything I was unhappy with. It was a bit confusing, but I am happy with my photo book”.
PhotobookShop edited the review to say, “I used their AI assistant tool to help me make it [the hard-cover photobook], and I am happy with my photo book”.
the ACCC found that it did not disclose the edits and alleged that the edits that were made “changed the overall impression” by the influencer’s review.
“When a business posts a review on social media, consumers would reasonably assume that the post genuinely reflects the review. In the case of PhotobookShop, we consider the review it posted did not reflect the overall impression of the influencer’s review, and appeared more favourable to PhotobookShop,” Low said.
“PhotobookShop’s misleading reviews may have caused consumers to buy PhotobookShop’s products when they would not have bought them based on the complete video review.”
The consumer watchdog has moved its focus on influencers for the last couple of years, with the ACCC conducting its first social media sweep in January 2023. Per its findings, published in December 2023, 37 per cent of online reviews and testimonials that were reviewed raised concerns.
The ACCC said it will “soon release specific guidelines for influencers” that will outline their obligations under the Australian Consumer Law when it comes to working with businesses.
The post PhotobookShop Cops ACCC’s First Ever Fine Over Misleading Influencer Product Reviews appeared first on PEDESTRIAN.TV .
