PhotobookShop slapped with $39k fine over social media review edits and secret influencer gifts in ACCC first

An online photo book company has become the first Australian business to be penalised for not disclosing paying influencers to review its products. PhotobookShop has been ordered to pay $39,600 by the Australian Competition and Consumer Commission over content posted to the retailer’s Instagram page. The watchdog found the influencer — turned whistleblower — who tipped-off the consumer watchdog after they were asked to sign an agreement with the company which explicitly requested they hide the fact they had been gifted a photobook in exchange for their endorsement. Between August 2024 and September 2025, the company commissioned influencers to produce social media reviews. On 107 occasions, PhotobookShop instructed these creators to keep quiet about the gifts — valued between $50 and $400 — they received as payment. A letter sent by PhotobookShop to its influencers said: “Please ensure that your videos do not mention that the product is free, sponsored, or that PhotobookShop contacted you to create them in exchange for products.” The ACCC alleges that by posting these reviews to its own page without disclosure, PhotobookShop duped consumers into believing the praise was organic and unpaid. A second fine was issued after the company allegedly took a digital scalpel to an influencer’s honest feedback. The creator had originally described the company’s AI assistant tool as “fiddly”. “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 photo book,” the creator said. However, the version PhotobookShop shared with its followers was heavily altered to remove the negatives. The edited clip simply read: “I used their AI assistant tool to help me make it and I am happy with my photo book.” Video’s of influencers raving about PhotobookShop’s products remain on the Melbourne businesses social media pages with some calling the products “stunning”, “beautiful” and declaring themselves “obsessed”. ACCC Deputy Chair Catriona Lowe said the edits changed the “overall impression” of the product. “When a business posts a review on social media, consumers would reasonably assume that the post genuinely reflects the review,” she 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. “PhotobookShop’s misleading reviews may have caused consumers to buy PhotobookShop’s products when they would not have bought them based on the complete video review.” Ms Lowe warned that the industry was now firmly in the regulator’s sights. “Influencers, businesses hiring them as well as any third party facilitators need to be aware of their Australian Consumer Law obligations,” she said.