Illusory Influencers and the Inadequacy of the Current Regulation of Social Media Advertising in Australia

Social media advertising represents a new era of marketing that allows businesses to interact with consumers on a vast range of platforms. Advertising on social media can be potentially misleading or deceptive due to the lack of disclosure by Social Media Influencers (SMIs) to their audiences as to the commercial arrangements underpinning products that they promote. This article explores how regulated disclosure obligations might help to combat the deceptive nature of what is referred to as "native advertising". Previous research on this topic has predominantly been approached from a marketing perspective. However, this article will focus on consumer protection regulation. The relevant legislative frameworks in the United Kingdom will inform a potential model which could be adopted in Australia to ensure regulation is adequate. Examining ways of protecting consumers from misleading or deceptive advertising in the new era of social media marketing is the core purpose of this article.