If you’re using influencers to spruik your business, the Australian Competition and Consumer Commission (ACCC) is warning that transparency is key, and the watchdog has handed down its first big fine to a small business for misleading consumers.

Online photobook retailer PhotobookShop has been hit with $39,600 in penalties after the ACCC issued two infringement notices over allegedly misleading influencer reviews.  The problem? The ACCC says the reviews looked like genuine customer love … but weren’t quite what they seemed.

What Photobookshop got wrong

The ACCC investigation kicked off after an influencer raised concerns about a deal that required them not to disclose they’d received a free photobook in exchange for a review.

According to the regulator, PhotobookShop went on to commission influencers between August 2024 and September 2025 and, in 107 cases, told them not to mention they’d been paid with free products.

In one case, the business also edited an influencer’s video review to remove negative comments about its AI tool being “a bit fiddly” and “a bit confusing”, leaving only the glowing bits behind.

What the ACCC says

ACCC Deputy Chair Catriona Lowe said failing to disclose payments was a no-no.

“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,” 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.”

Speaking of the edited review, Lowe said: “When a business posts a review on social media, consumers would reasonably assume that the post genuinely reflects the review.”

In this case, the ACCC believes it didn’t.

Why you need to pay attention

Small business owners dabbling in influencer marketing should pay attention to the ruling. The same rules apply to you under Australian Consumer Law as the big end of town. Even gifting a product counts as payment. If that’s not disclosed, you could be in hot water.

The ACCC has flagged misleading online reviews and dodgy digital marketing as a priority area, with a crackdown commencing in 2023. New influencer guidelines are expected to land soon.

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