The Australian Association of National Advertisers (AANA) has updated its Code of Ethics to impose stricter conditions for advertising on social media.

The advertising watchdog, Ad Standards, found Anna Heinrich and Rozalia Russian to have breached their obligations to expressly provide that they were being paid to promote products on Instagram. Under the Code, social media influencers are mandated to make known to their audience that they are being paid to promote a respective good or service. This is typically achieved through verbal disclaimers in videos and hashtags in Instagram posts.

Interestingly enough, Ad Standards noted that merely tagging a brand in the post was not enough to distinguish whether the social media influencer was being paid to promote the product. Similar instances have pervaded local and international advertising with many creators posting ambiguous captions and hashtags to misguide their viewers. In many situations, creators earn commissions off products sold through personalised links and viewers may be less inclined to buy an item when they know that the only reason the influencer is posting it is because they are paid to. To this extent, the previous iteration of the AANA Code of Ethics featured a “relevant audience” test ‘whereby influencers would not be in breach if it were assumed their followers would be aware a post was likely paid for even if not explicitly stated.’ This has now been removed.

AANA director of policy, Megan McEwin, has stated that these two Australian incidents have sent waves throughout the local advertising industry. As a “self-regulated industry”, it is important that social media begins to adhere to the same rules and standards that appear on other traditional media platforms, especially as this new industry is geared to become an overarching force in the foreseeable future. Not only will “naming and shaming” rein in unethical practices but the Australian Competition and Consumer Commission has noted that individuals who breach the Code of Ethics can incur fines of up to $500,000, as per Australian Consumer Law on misleading or deceptive conduct. 

The updated AANA Code of Ethics and push for internal policies within businesses is a great step forward, but many argue that further regulation may be required to develop transparent social media marketing and advertising standards.