The Australian Competition and Consumer Commission has issued $39,600 in penalties to PhotobookShop, marking the first time the regulator has fined a business for misleading social media practices involving influencers.
The online photo-printing giant was penalised for allegedly "airbrushing" honest feedback and orchestrating a scheme to hide sponsored content from consumers.
The investigation was sparked by a whistleblower who revealed that between August 2024 and September 2025, PhotobookShop commissioned influencers to produce reviews while explicitly instructing them to remain silent about their payment.
On 107 occasions, creators were told to avoid mentioning that their products—valued between $50 and $400—were free or sponsored.
According to the ACCC, these directives duped the public into believing the endorsements were organic and unpaid.
Further scrutiny revealed the company used a "digital scalpel" to edit a creator’s honest review of their AI assistant tool.
While the original video described the software as "fiddly" and "confusing," the version shared by PhotobookShop was heavily truncated to remove all negatives, leaving only a glowing recommendation.
ACCC Deputy Chair Catriona Lowe stated that such alterations fundamentally changed the "overall impression" of the product, potentially tricking customers into purchases they otherwise would have avoided.
Lowe warned that influencers and businesses alike are now firmly in the regulator's sights, emphasising that all parties must uphold their Australian Consumer Law obligations to ensure a fair and honest digital marketplace.