Victorian business fined for telling influencers to lie about paid Instagram post in first of its kind penalty | Consumer affairs
An online photo book retailer has been fined nearly $40,000 for asking social media influencers not to disclose that they were paid to post a review on Instagram.
This marks the first time a business in Australia has been penalized for an influencer failing to disclose its paid shipping.
The Australian Competition and Consumer Commission (ACCC) has issued two infringement notices totaling $39,600 to Tomsem Consolidated, operating as PhotobookShop, after an influencer raised concerns.
PhotobookShop sells photo books, photo canvases, photo puzzles and other products online.
The ACCC found that between August 2024 and September 2025, the company commissioned influencers to review its products online and on 107 occasions instructed those influencers not to disclose that it had paid between $50 and $400 worth of free PhotobookShop products for review.
“Please ensure your videos do not mention that the product is free, sponsored or that PhotobookShop has contacted you to create them in exchange for the product,” reads a screenshot of one such written agreement published by the ACCC. it said.
The ACCC said an influencer created a review that did not disclose commission or free product. The ACCC issued an infringement notice, alleging that PhotobookShop offered consumers that the review was a free review.
“Businesses must not mislead consumers by publishing misleading reviews or failing to disclose when an influencer has been paid to create social media content, whether this payment is for free goods or services, or cash,” ACCC deputy chair Catriona Lowe said in a statement.
“Influencers can be a powerful marketing tool, and Australian consumer law applies to the digital world as much as it does to physical retailers.”
Businesses that advertise online, including through the use of influencers, must disclose paid advertising under Australian consumer law, just as they do in other media such as TV or radio.
In the second violation, the regulator also found that PhotobookShop significantly edited a review by an influencer to remove negative content.
In a review of a hardcover photo book, one influencer said: “I used their AI companion tool to help me do this [the hard-cover photobook] and although it was a bit complicated it helped the overall experience and then I had the chance to change everything I was unhappy with. “It was a little confusing, but I’m happy with my photo book.”
The ACCC claimed it was rigged to say: “I used their AI companion tool to help me do this [the hard-cover photobook] and I am happy with my photo book.”
The ACCC said there was no confirmation in the post that the video had been edited.
“PhotobookShop’s misleading reviews may have caused consumers to purchase PhotobookShop products when they would not have purchased based on the entire video review,” Lowe said.
Photobookshop was approached for comment. Influencer posts on the company’s Instagram page now clearly identify sponsored content and posts where giveaways are given to reviewers.
Influencers have been the focus of the ACCC’s work over the last few years. In 2023, a scan focusing on fashion, beauty, travel, health and fitness was carried out on platforms including Instagram, TikTok, Snapchat, YouTube, Facebook and Twitch.
ACCC found 37% of these online reviews or the references evaluated had raised concerns.
The regulator said on Tuesday it will soon publish guidelines for influencers outlining their obligations under Australian consumer law.
