
Influencer marketing is a popular way for brands/businesses to promote their products and services through social media influencers and/or ambassadors. These are individuals who have a large following on platforms like Instagram, TikTok, and YouTube, and who are often seen as experts in their field.
However, it’s important for businesses and creators to be aware of the legal implications of working with one another, whether it be in Australia or on a global scale.
First off, it’s important to understand that influencer marketing is considered to be advertising, and as such, is subject to the same laws and regulations as other forms of advertising. This means that influencer marketing campaigns must be truthful, shall not be misleading, and not make false or misleading claims.
DISCLOSURE OF COMMERCIAL RELATIONSHIPS
One key area to be aware of is the requirement to disclose any commercial relationships between influencers and businesses.
Australian law requires that any sponsored or paid content must be clearly identified as such. This means that influencers must include a disclaimer that their post is sponsored or that they have received payment for the post. Failure to disclose a commercial relationship can result in penalties under Australian consumer law.
Protection of Influencer's Information and Image
Another area to be aware of is the use of influencer’s personal information and image. Businesses must obtain the influencer’s consent before using their image or personal information for advertising purposes. This is important to ensure that influencers’ rights are protected and that they are not exploited.
Compliance with Social Media Platform Terms
Finally, it’s important to be aware of the laws that govern social media platforms. Platforms like Instagram, Facebook and TikTok have their own terms of service, and businesses must comply with these terms when running influencer marketing campaigns. For example, Instagram’s terms of service prohibit the use of third-party apps to automate liking, commenting, and following.
Influencer marketing is definitely on the rise and can be a powerful tool for businesses and individuals, but it’s important to be aware of the legal implications.
Know your legal requirements & Code of Practice
Businesses must ensure that their campaigns are truthful and not misleading, that commercial relationships are disclosed, that influencers’ rights are protected, and that they comply with the terms of service of the social media platforms they are using.
Likewise, creators/influencers, need to ensure they adhere to strict advertising guidelines before making any posts for financial gain! They also need to be aware of the Australian Consumer Law (ACL) requirements, including not engaging in conduct that is likely to mislead or deceive the public, as any breaches of the ACL could result in hefty fines and penalties, which are enforced by Australian regulator, Australian Competition and Consumer Commission (ACCC).
IMPORTANT HASHTAGS TO SHOW IN YOUR POSTS
In addition, creators need to be aware of the Australian Association of National Advertisers (AANA) Code of Ethics and The Australian Influencer Marketing Council (AIMCO) Code of Practice. For example, AIMCO recommends including the following hashtags on paid posts:
#Ad; #Advert; #Advertising; #PaidPartnership; #PaidPromotion; or #Sponsored.
So, if you are an up-and-coming influencer getting approached by brands to promote and endorse their products or service, it’s always best to disclose the paid partnership even if you only receive a product or service in return for posting endorsed content to your hundreds of thousands or even millions of followers!
Be transparent with your advertising
On the flip side, if you are a brand wanting to engage an influencer to maximise the exposure of your product or service, then while there are no specific requirements for you to disclose an advertisement when reposting influencer content onto their platforms, as this would be perceived by the public to be content of a commercial nature, it must be clear that it is intended for this purpose.
If you require assistance with your influencer marketing campaigns, drafting of clear and concise influencer, ambassador or brand promotion endorsement agreements, image release forms or rights agreements, or if you just want to find out more about this exciting space, hit us up!
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Mark Lazarus
Mark Lazarus, the visionary behind the business and the fresh blood of the Lazarus Legal team, Mark (or Laz as he is often known) owes much of his success to his past experiences. And he’s made it his personal goal to bring that wisdom and formula to the firm.