PhotobookShop Hit with $39,600 Fine in Landmark ACCC Enforcement Action
The Australian Competition and Consumer Commission (ACCC) has imposed a significant penalty on PhotobookShop, an online photo book retailer, for instructing social media influencers to conceal paid endorsements and editing reviews to remove negative feedback. This marks the first time an Australian business has been fined for failing to disclose influencer compensation, setting a precedent in digital advertising regulation.
Details of the Infringements and ACCC Findings
Between August 2024 and September 2025, PhotobookShop, trading under Tomsem Consolidated, commissioned influencers to review its products, including photo books, canvases, and puzzles. On 107 occasions, the company explicitly instructed these influencers not to disclose that they received free products valued between $50 and $400 as compensation. A screenshot of a written agreement released by the ACCC stated, "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 issued two infringement notices totalling $39,600 after an influencer raised concerns. One review was posted without any disclosure, leading the regulator to allege that PhotobookShop misled consumers by presenting it as an unpaid, genuine endorsement. ACCC deputy chair Catriona Lowe emphasized, "Businesses must not mislead consumers by posting misleading reviews or failing to disclose when an influencer has been paid to create social media content, whether that payment is free gifted products or services, or money."
Edited Reviews and Consumer Impact
In a separate infringement, the ACCC found that PhotobookShop substantively edited an influencer's review to remove negative content. The original review of a hardcover photo book mentioned, "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." This was edited down to, "I used their AI assistant tool to help me make it and I am happy with my photo book," with no acknowledgment of the changes.
Lowe noted that such actions may have influenced consumer purchasing decisions, stating, "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." Since the investigation, posts on PhotobookShop's Instagram page now clearly label sponsored content and gifted products.
Broader Context and Future Guidelines
This case highlights the ACCC's ongoing focus on influencer marketing, following a 2023 sweep of platforms like Instagram, TikTok, and YouTube, which found that 37% of assessed reviews raised concerns. The regulator announced it will soon release guidelines for influencers outlining their obligations under Australian consumer law, applying the same standards as traditional media like TV or radio.
PhotobookShop was approached for comment but has not publicly responded. The enforcement action underscores the importance of transparency in digital advertising, as Lowe concluded, "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."
