The new Australian rules which have been released bans influencers in that region from advertising health products such as vitamins, skincare, sunscreens, and protein powders online.
The Therapeutic Goods Administration updated their advertising code preventing social media influencers and content creators from being paid – either through money or free exchange. From posting products online, influencers can now give testimonials for various products with no gifting or payment in return.
Unfortunately, any posts which have now gone up online on different social media platforms to promote any brands or companies will now have to be painstakingly removed by creators. The regulations will be enforced on the 1st of July, yet the Administration (TGA), advises influencers to start the removal now.
What are the details of the code?
According to the TGA website:
This legislative instrument was made under section 42BAA of the Therapeutic Goods Act 1989(link is external) (the Act). There are criminal offences and civil penalties for advertising to the public in a manner that does not comply with the Code.
Advertising of therapeutic goods requires a higher ethical standard than may apply for advertising of ordinary consumer goods because consumers rely on therapeutic goods for their health.
It can be difficult for a consumer to determine the appropriateness of a therapeutic good for their particular circumstances, so it is important that promotional material is truthful, balanced, and not misleading.
The Code exists to ensure that the advertising of therapeutic goods to the public is conducted in a manner that:
- Promotes the safe and effective use of therapeutic goods by minimising misuse, overuse or underuse
- Is ethical, does not mislead or deceive the consumer or create unrealistic expectations about product performance
- Supports informed health care choices
- Is not inconsistent with relevant current public health campaigns.
Why may this have a global effect?
The term ‘influencer’ has developed through time and still developing as a name, role, and status in society. Influencers have a social media presence allowing businesses and brands to communicate their products through creators who are relevant to their niche to promote their vision. For sponsored posts, payment varies and taking this away from influencers, reduces their salary intake and motivation to create.
This in turn could have a knock-on global effect if the rules begin to spread in other parts of the world. Influencers could lose out on making a salary, businesses who work on Influencer Marketing campaigns can also lose money, and brands may struggle to sell their products online.
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