Do Influencers Have To Say It’s An #Ad?

Influencer marketing is now a core part of how Australian brands reach customers. Whether you’re a creator posting product reviews or a business partnering with influencers, one question comes up again and again: do you have to say when a post is an ad?

In short, yes-if there’s a commercial relationship that could influence the content, the audience must be able to clearly tell it’s advertising. In Australia, this isn’t just a “nice to have”. It sits at the intersection of the Australian Consumer Law and industry advertising codes, and both brands and creators share responsibility.

In this guide, we’ll walk through when disclosure is required, how to label sponsored content properly, the rules that apply in Australia, the risks of getting it wrong, and the contracts and policies you should have in place to protect your brand-and your reputation.

When Do Influencers In Australia Have To Disclose An #Ad?

Disclosure is required whenever there’s a “material connection” between the influencer and the brand that might reasonably affect how a consumer understands the content.

This includes situations where the creator is paid, gifted products or services, receives a discount or affiliate commission, or has any other commercial relationship. It applies even if the creator genuinely likes the product and the opinion is honest-if there’s a commercial benefit, the audience needs to know.

Both the brand and the influencer are responsible for ensuring the content is clearly distinguishable as advertising. If the connection isn’t obvious (and it usually isn’t), you should disclose it.

A practical test is: would the average follower immediately recognise this as advertising without a disclosure? If not, label it as an ad.

What Counts As A “Material Connection”?

A material connection can be direct or indirect. Common examples include:

• Payment of a fee or commission (including affiliate links or revenue share)
• Gifts, freebies, PR packages, loaned products or experiences provided at no cost
• Discounts or special terms not available to the general public
• Employment, consultancy or ambassadorship arrangements (including ongoing partnerships)
• Family or ownership ties to the brand

It’s not limited to cash. If something of value has been provided, there’s likely a material connection.

For creators, it’s safest to treat any brand benefit as a connection that needs disclosure. For brands, build this requirement into your influencer agreements and approval process so it’s not missed.

How Should Disclosures Be Made (And What To Avoid)?

Disclosures should be clear, prominent and upfront. The goal is that an average consumer can immediately identify the content as advertising before they engage with it.

Make It Obvious And Immediate

• Use simple, clear labels such as “Ad”, “Sponsored” or “Paid Partnership”.
• Place the disclosure at the start of the caption or where it’s immediately visible-don’t bury it at the end.
• On Stories or short-form videos, include the disclosure on every frame or within the first seconds, and ensure it’s readable on-screen (not hidden behind UI elements).
• For long-form video, say it verbally at the beginning and include a written disclosure in the description and on-screen.
• Use platform disclosure tools (e.g. “Paid partnership” tags) but don’t rely on them alone-add a clear written disclosure as well.

Hashtags And Language That Work

• #ad and #sponsored are widely recognised and effective.
• Use plain English alongside hashtags, such as “Paid partnership with ”.
• Avoid ambiguous terms like “sp”, “spon”, “collab”, “thanks ”, or just tagging the brand-these are not sufficiently clear.

Common Pitfalls To Avoid

• Disclosures hidden among 20+ hashtags or after a “Read more” break.
• Making the disclosure in a different piece of content (e.g. only on the first story but not on subsequent frames).
• Using tiny fonts, low contrast text, or placing the label where UI elements cover it.
• Misleading phrasing like “review” or “honest thoughts” without also making the sponsorship clear.

Remember: the standard is whether the disclosure is “clear and prominent” to the audience. If in doubt, err on the side of being clearer and earlier.

What Laws And Codes Apply To Influencer Advertising?

Influencer content in Australia is regulated by a combination of law and industry codes. The main frameworks to consider are:

Australian Consumer Law (ACL)

The ACL prohibits misleading or deceptive conduct and false or misleading representations. If an ad looks like independent content when it’s not, that can mislead consumers.

Section 18 of the ACL (misleading or deceptive conduct) often applies to influencer content, so it’s important to understand your obligations under section 18. More broadly, the elements of misleading conduct are a helpful lens when reviewing posts and scripts.

Penalties can include ACCC action, enforceable undertakings, corrective advertising and reputational damage. Both brands and influencers may be liable.

AANA Code Of Ethics (And Ad Standards)

The Australian Association of National Advertisers (AANA) Code of Ethics requires that advertising be clearly distinguishable as such. Ad Standards (the industry body) handles complaints and often looks at whether influencer posts were adequately disclosed.

Even if there’s no intent to mislead, failing to label content properly can still fall foul of these rules.

Category-Specific Rules

• Therapeutic goods and health: The Therapeutic Goods Advertising Code has strict rules for endorsements and testimonials, especially where “valuable consideration” is involved (paid testimonials are generally prohibited).
• Alcohol: Content should comply with the ABAC Responsible Alcohol Marketing Code (e.g. no appealing to minors, no promoting excessive consumption).
• Financial products: If content promotes financial products or advice, ASIC rules may apply and a licence could be required in some cases.
• Gambling and other regulated sectors: Expect additional codes and platform restrictions.

Platform Policies

Each platform (Instagram, TikTok, YouTube, etc.) has its own rules requiring disclosures for branded content. These sit alongside Australian law and industry codes-so you need to comply with all of them.

Contracts And Legal Documents You Should Have In Place

A clear paper trail protects both the brand and the creator. The right agreements set expectations on disclosure, content approvals, IP ownership and compliance. Key documents to consider include:

• Endorsement Agreement: Sets out deliverables, disclosure obligations, approval rights, key dates, usage rights, exclusivity, fees and termination. Make sure it requires compliance with the ACL and the AANA Code, and gives you a right to request edits or takedown if rules aren’t met.
• Copyright Licence Agreement: If the brand will reuse influencer content (paid ads, website, in-store), a licence clarifies where, how long and in what formats you can use it. Address moral rights consents so content can be edited or adapted if needed.
• Talent or Model Release: If other people appear in the content, secure a written release so you can use the footage across channels without issues.
• Brand and Content Guidelines: Attach brand safety rules (no claims about health, age restrictions for alcohol, no competitor references, etc.) and disclosure requirements (e.g. exact labels to use such as “Ad”).
• Approval Process And Takedown Rights: Build a practical workflow for pre-approval (where appropriate) and post-publishing monitoring, with clear rights to request changes.

If you run campaigns that collect user data (e.g. emails via a landing page) or host giveaways, you’ll also want to cover privacy and competition rules (more on this below).

Documents For Your Digital Touchpoints

• Privacy Policy: Required if you collect personal information, and best practice even if you’re not sure. It explains what you collect, why you collect it and how you store and share it.
• Website Terms and Conditions: Set the rules for using your site or landing pages, limit your liability and protect your IP and content.
• Competition Terms & Conditions: If you’re running giveaways with influencers, you’ll need clear entry rules, eligibility, judging/draw methods, prize details and permit requirements where relevant.

What Should An Influencer Agreement Actually Say?

Beyond the basics (deliverables, payment terms and timelines), tighten your agreement around risk hotspots:

• Compliance: A warranty that the influencer will follow the ACL, the AANA Code, category-specific codes (e.g. TGA/ABAC/ASIC as relevant), and platform rules.
• Disclosures: Specify the disclosure language and placement (e.g. “Ad” at the start of captions, on-screen labels for stories, platform-paid partnership tag plus written disclosure).
• Claims And Substantiation: Restrict unapproved claims (e.g. health benefits) and require that any factual statements are truthful and verifiable.
• Approval & Takedown: Pre-approval rights for scripts/captions where appropriate, plus immediate takedown on request for non-compliance.
• IP And Usage Rights: Who owns the content, what licence the brand gets, how long usage runs, and where it can appear (paid ads, organic, OOH).
• Exclusivity & Conflicts: Define competitor categories and blackout periods.
• Indemnity & Liability: Commercially sensible protections on both sides, and insurance requirements for larger activations.

Running Giveaways, Collecting Emails And Other Compliance Tips

Influencer campaigns often include lead magnets, competitions and follow-up marketing. These add extra compliance layers to think about.

Competitions And Giveaways

Giveaways are heavily regulated and rules vary by state and territory, especially for games of chance (permits, prize caps and draw rules). Clear Competition Terms & Conditions help you set lawful entry requirements, eligibility criteria and draw procedures. It’s also important to make sure your giveaway posts aren’t misleading under the ACL-set accurate timelines, prize numbers and eligibility limits.

Separate to platform rules, Australian law governs promotions, so it’s worth checking the giveaway laws in Australia before you launch.

Email Capture And Direct Marketing

If your campaign collects emails or phone numbers, you’ll need a clear Privacy Policy and to follow Australia’s spam and direct marketing rules. Make consent meaningful, keep records and offer an easy opt-out. For campaigns that include newsletters or EDMs, revisit your processes against Australia’s email marketing laws.

Avoid Misleading Content At Every Step

Beyond disclosure, make sure claims are honest, accurate and substantiated. That includes price, product performance, “limited time” offers and consumer testimonials. Review your campaign flow through the lens of the ACL (including section 18) and the general misleading conduct rules.

Tidy Up Your Site And Landing Pages

Ensure your landing pages and T&Cs match what influencers say in content. If an influencer promises free shipping or a specific bonus, your site should reflect it. Your Website Terms and Conditions and refund language should be consistent with the Australian Consumer Law.

Key Takeaways

• In Australia, influencers and brands must disclose a material connection (payment, gifts, discounts or affiliate benefits) so content is clearly recognisable as advertising.
• Make disclosures obvious, upfront and readable-use “Ad”, “Sponsored” or “Paid Partnership” and place them where followers will see them immediately, including on each story frame or early in video.
• The Australian Consumer Law and AANA Code of Ethics apply to influencer posts; failure to disclose or making misleading claims can trigger complaints, enforcement and reputational damage.
• Have robust contracts in place-an Endorsement Agreement plus content/IP licences, brand guidelines and takedown rights-to manage disclosure, claims and usage risks.
• Support your campaigns with clear digital terms: a Privacy Policy, Website Terms and Conditions and Competition Terms & Conditions where promotions are involved.
• Review every touchpoint-posts, captions, landing pages and follow-up emails-against the ACL’s misleading conduct rules to keep your marketing compliant end to end.

If you’d like a consultation on setting up compliant influencer marketing (including agreements, disclosures and campaign T&Cs), you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.