Social Media and Misleading and Deceptive Conduct

In the digital age, social media has revolutionized communication, marketing, and public discourse. Platforms like Instagram, Facebook, TikTok, and X (formerly Twitter) allow businesses and individuals to reach large audiences instantly. Businesses have increasingly used social media as a tool to promote products, services and their respective brands.

Those using social media for promotion need to ensure the content in their posts and social media pages is accurate and not false, misleading or deceptive.

The Australian Consumer Law ("ACL") prohibits misleading and deceptive conduct and false or misleading representations in trade or commerce. Even if the misleading action was unintentional, it may still breach consumer protection laws.

Examples of conduct they may breach the ACL could include:

• False claims about a product’s effectiveness

• Deceptive pricing strategies

• Concealing sponsorships or paid promotions

• Creating fake reviews or testimonials

The Rise of Influencer Marketing

One of the most prominent areas where deceptive conduct arises is influencer marketing. When influencers promote products, services, or brands without clearly disclosing payment or sponsorship, they can mislead their followers. For example, tagging a brand in a post without stating it's a paid collaboration may create the false impression of a genuine, unpaid endorsement.

The ACCC have issued a paper raising these concerns. Refer to: Social Media Influencer Testimonials and Endorsements.

AI and Digital Manipulation

Emerging technologies add new layers of complexity. AI-generated content, deepfakes, and other digital manipulations can be used to exaggerate a product’s features or create false endorsements. While these tools offer creative opportunities, they also raise serious concerns about authenticity and truthfulness.

Regulators and tech companies are still catching up, but the principle remains clear: if a representation is likely to mislead a reasonable consumer, it may be unlawful.

Conclusion

Social media is a powerful tool. To minimise the risk of beaching the law, the general position should be that you refrain from using social media to make comments about your business, brand, products and services (or those of others) that you know has not been properly researched or is likely to mislead the public. If you’re unsure about what you can or can’t say, seek legal advice.

If you require legal assistance, contact Greyson Legal.