An Australian online photobook retailer has been hit with penalties totalling $39,600 after regulators found it may have misled customers through influencer content shared on social media.

The Australian Competition and Consumer Commission issued two infringement notices to Tomsem Consolidated Pty Ltd, which operates as PhotobookShop, following an investigation into how the business handled influencer marketing on Instagram.

The inquiry began after an influencer raised concerns about an agreement that reportedly asked them not to reveal they had received a free product in exchange for creating a review. According to the regulator, the company arranged for influencers to produce promotional content over an extended period and, on more than 100 occasions, instructed them not to disclose that the products had been provided at no cost.

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The items given to influencers were valued between roughly $75 and $600. By not revealing these arrangements, the ACCC alleges the posts created the impression that the reviews were independent and unpaid, which could mislead consumers.

In one case, an influencer’s review was shared on the company’s Instagram account without any indication that it had been commissioned or incentivised. The regulator argues this presentation may have led audiences to believe the feedback was genuine and unsolicited.

A second issue related to how the company handled negative feedback. After commissioning a video review, PhotobookShop edited the content to remove comments that described parts of the product experience as confusing. The version published online only included positive remarks, with no disclosure that changes had been made.

Regulators say this altered the overall tone of the review and potentially gave consumers a more favourable impression than the original content intended. The ACCC maintains that when businesses share reviews, audiences should be able to trust that they reflect the reviewer’s true opinion.

The case highlights growing scrutiny of influencer marketing practices in Australia, where both brands and content creators are expected to clearly disclose any commercial relationships. Under consumer law, failing to do so can be considered misleading conduct, regardless of whether the compensation comes in the form of money, products or services.

The ACCC has indicated that enforcement in this area will continue, with updated guidance for influencers expected soon. Industry groups have also introduced their own codes of conduct, emphasising that advertising content must be clearly identifiable to audiences.

PhotobookShop, based in Victoria, sells personalised printed products such as photobooks and canvases through its online platform.