PhotobookShop Hit with $39,600 Fine in Landmark ACCC Ruling Over Influencer Misconduct
An online photo book retailer has been penalised with a substantial fine of $39,600 for directing social media influencers to conceal the fact that their Instagram posts were compensated promotions. This case represents the first instance in Australia where a business has faced financial penalties for failing to disclose paid influencer content, setting a significant precedent in digital marketing regulation.
Details of the ACCC Investigation and Findings
The Australian Competition and Consumer Commission (ACCC) issued two infringement notices to Tomsem Consolidated, operating as PhotobookShop, following a report from an influencer who raised concerns. Between August 2024 and September 2025, the company commissioned influencers to create reviews of its products, which include photo books, canvases, and puzzles. On 107 separate occasions, PhotobookShop explicitly instructed these influencers not to disclose that they had received free products valued between $50 and $400 in exchange for their reviews.
A screenshot of a written agreement released by the ACCC revealed the directive: "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." As a result, one influencer posted a review that omitted any mention of compensation, leading the ACCC to allege that PhotobookShop misled consumers by presenting it as an unpaid, genuine endorsement.
Second Infringement: Editing of Negative Review Content
In addition to the disclosure failures, the ACCC found that PhotobookShop had substantially edited a review from an influencer to remove negative feedback. The original review of a hardcover photo book stated: "I used their AI assistant tool to help me make it 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."
This was edited down to: "I used their AI assistant tool to help me make it and I am happy with my photo book," with no acknowledgment of the edits made. The ACCC argued that this misleading practice could have influenced consumers to purchase products they might otherwise have avoided based on the complete, unedited review.
ACCC Statements and Broader Implications
ACCC deputy chair Catriona Lowe emphasised the importance of transparency in digital advertising, stating: "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. 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."
The regulator highlighted that businesses advertising online, including through influencers, are required to disclose paid promotions under Australian consumer law, similar to traditional media like TV or radio. This case follows a broader ACCC sweep in 2023 across platforms such as Instagram, TikTok, and YouTube, which found that 37% of online reviews assessed raised concerns about transparency.
Response and Future Guidelines
PhotobookShop was approached for comment, and its Instagram page now clearly labels sponsored content and posts where gifts were provided. The ACCC announced that it will soon release guidelines for influencers outlining their obligations under consumer law, aiming to curb such practices in the future and protect consumers from deceptive marketing tactics.
