PhotobookShop Hit with $39,600 Fine in Landmark ACCC Case Over Social Media Deception
An online photo-printing giant, PhotobookShop, has become the first business in Australia to face significant penalties for allegedly manipulating social media reviews and concealing influencer payments, in a case brought by the Australian Competition and Consumer Commission (ACCC). The company has been ordered to pay $39,600 for practices that misled consumers through its Instagram page.
Secret Influencer Gifts and Gag Orders Exposed
Between August 2024 and September 2025, PhotobookShop commissioned influencers to produce social media reviews of its products. On 107 occasions, the company instructed these creators to keep quiet about gifts they received, valued between $50 and $400, in exchange for endorsements. A whistleblower influencer alerted the ACCC after being asked to sign an agreement that explicitly requested hiding the fact they had been gifted a photobook.
A letter from PhotobookShop to influencers 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 alleges that by posting these reviews without disclosure, PhotobookShop deceived consumers into believing the praise was organic and unpaid.
Digital Editing of Negative Feedback
A second fine was issued after PhotobookShop allegedly edited an influencer's honest feedback to remove negative comments. The original review described the company's AI assistant tool as "fiddly" and "a bit confusing," but the edited version shared on social media simply read: "I used their AI assistant tool to help me make it and I am happy with my photo book."
ACCC Deputy Chair Catriona Lowe said the edits changed the "overall impression" of the product, making it appear more favourable. She warned that such misleading reviews could have caused consumers to buy products they otherwise would not have, based on the complete video review.
Regulatory Crackdown on Influencer Marketing
Ms Lowe emphasized that the influencer industry is now firmly in the regulator's sights, stating: "Influencers, businesses hiring them as well as any third party facilitators need to be aware of their Australian Consumer Law obligations." This case highlights the ACCC's commitment to enforcing transparency in digital marketing and protecting consumers from deceptive practices.
The penalties serve as a stark reminder to businesses and influencers alike about the importance of honesty in online endorsements, as regulatory scrutiny intensifies in the evolving landscape of social media advertising.
