A Victorian company has been fined nearly $40,000 for directing influencers to conceal paid partnerships and for editing out criticism of its AI tools in a separate review.
It is the first time an Australian business has been penalised for failing to disclose that an influencer was paid to produce content or a review.
Victorian-based PhotobookShop, which sells personalised printed products online, received two infringement notices from the Australian Competition and Consumer Commission (ACCC), totalling $39,600.
One notice related to the company failing to clearly disclose that influencer reviews it shared were paid for with free products.
The second concerned the company editing an influencer’s review to remove criticism of its AI assistant before posting it.
The reviews were published between August 2024 and September 2025.
ACCC first announced a crackdown in early 2023 on influencers and businesses that fail to disclose paid promotions. Since then, it has investigated more than 100 influencers following public tip-offs.
This marks the first time an infringement notice has been issued under that crackdown.
Undisclosed paid reviews
ACCC said PhotobookShop breached Australian Consumer Law by failing to disclose that influencers were paid or commissioned to review its products when posting the content to Instagram.
The company also instructed influencers not to disclose these arrangements.
Its contract stated: “Please ensure your videos do not mention that the product is free, or sponsored, or that PhotobookShop contacted you to create them in exchange for products.”
The issue came to light when an influencer who received the contract reported it to the regulator.
ACCC found the company gave this instruction more than 100 times, with gifted products valued at up to $400.
The regulator’s deputy chair Catriona Lowe said the conduct misled consumers by making the reviews appear independent when that was not the case.
“Businesses must not mislead consumers by posting misleading reviews or failing to disclose when an influencer has been paid to create social media contact whether the payment is free gifted products or services, or money,” Lowe said in a statement.
“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.”
Editing out AI criticism
PhotobookShop was also penalised for editing an influencer’s review of its hard-cover photobook.
In the original review, the influencer described the company’s AI assistant as “a bit fiddly” and “a bit confusing.”
The full quote in the original review was: “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 photobook.”
Before posting the review on Instagram, the company removed the critical remarks, leaving only: “I used their AI assistant tool to help me make it and I am happy with my photobook.”
ACCC said this edit altered the overall impression of the review and may have influenced consumers to purchase the product.
“When a business posts a review on social media, the consumers would reasonably assume that the post genuinely reflects the review,” Lowe said.
“In the case of PhotobookShop, we consider the review it posted did not reflect the overall impression of the influencer’s review, and appeared more favourable to PhotobookShop.
“Influencers, businesses hiring them as well as any third-party facilitators need to be aware of their Australian Consumer Law obligations.”
The regulator is also preparing new guidelines for influencers to clearly outline their obligations under Australian Consumer Law.
