There’s a good chance you’ve heard about the recent changes to the TGA’s Advertising Code.
But if you’ve managed to avoid this media storm, here’s a quick recap…
The Australian Therapeutic Goods Administration (TGA) recently released a new Code designed to regulate the promotion and advertising of therapeutic products. Despite spending 18 months consulting with stakeholders, early reports of the new Code from misinformed media outlets (*cough* The Australian *cough*) sparked a frenzy with unsubstantiated claims of an “Influencer Promotion Ban”.
This new Code was said to ban influencers from receiving perks (whether cash or gifts) for posting about health and skincare products. Naturally, alarm bells rang for influencers and brands in the health and wellness space who rely on influencer partnerships to generate exposure, spike interest, and drive sales.
With businesses making an average of $5.20 for every $1 spent on influencer marketing, it’s no surprise many brands - as well as influencers - were concerned about what this would mean going forward.
But don’t believe everything you hear.
If the confusion surrounding the TGA’s influencer Code has your head spinning, we’ve got the accurate info you need. Here’s what the recent changes mean for you, how to follow these new guidelines without worry, and how to get the most from your future influencer partnerships.
Alright, here’s what you need to know.
The Australian Therapeutic Goods Administration (TGA) released a new advertising Code in December of 2021. The updates to the Code governed paid and gifted testimonials and banned influencers from providing paid testimonials in return for cash or samples (effective June 30th, 2022).
As mentioned, prominent media outlets (*cough* The Australian *cough*) broke the story with inflammatory headlines about this ban that caused significant confusion and distress. For brands and influencers who partner to deliver cost-effective and powerful influencer marketing campaigns, this news came as a shock - but there’s more to this story than meets the eye.
The changes did introduce new guidelines preventing influencers from posting testimonials for paid therapeutic products. But the Code does not ban influencers from endorsing or promoting a product in exchange for payment or gifts. These may sound similar, but they're actually very different. As long as the endorsement/promotion adheres to the rules set out in the TGA Code, nothing has changed (read on to find out how to stay out of trouble).
The Influencer Agency Tip: The broad definition of Therapeutic goods includes some of the most popular influencer-marketed products including vitamins, protein powders, supplements, and cosmeceuticals like acne treatment and sunscreen - pretty much any product that requires TGA approval.
As mentioned, the updated TGA code doesn’t ban influencers from promoting health and beauty products. It just limits health advice given by people unqualified to give health advice.
It’s already common (and required) for influencers who endorse, or advertise, products to disclose a commercial partnership with a hashtag like #Ad or the words ‘paid partnership’. Under the new code, paid influencers can still endorse therapeutic products, as long as they don’t use a personal testimonial for how the product works for them.
Diving beyond clickbait and scandalous headlines, the changes make sense. Products that affect people’s lives and health should adhere to higher ethical standards. And consumers want to find the best health and beauty products. But when an influencer makes an unrealistic claim about an acne cream or supplement (“my entire skin cleared up in hours”), it makes life harder for consumers to find the products that are genuinely right for their health.
So if you’re a brand offering therapeutic goods, the most important change you’ll need to make is to partner with influencers who understand the new rules and who can be trusted with your brand message.
The Influencer Agency Tip: The TGA is not responsible for goods that don’t claim to have health benefits. So if you’re an alcohol brand or offer beauty products, these changes are not likely to affect you.
We’ll defer to the TGA for this one.
“A testimonial is made where an individual has testified to the outcomes they experienced from the use of the therapeutic good. An endorsement, on the other hand, is made where an individual approves of a particular therapeutic good, but there is no indication as to the outcomes from the use of the good.”
That means an influencer partnering with a skincare company can’t make therapeutic claims that haven’t been tested or approved. These might be personal statements that claim a product helped “remove toxins”, “relieve pain” or “fade age spots”. But it’s OK for an influencer to endorse a product without claiming specific, personal results.
Here’s another example of how a hypothetical 'skinfluencer' might approach a paid campaign with a supplement company:
✔ “These supplements support healthy skin” = OK
✘ “These supplements drew toxins from my skin and left me looking 5 years younger” = NOT OK
With all that said, you can officially exhale and stop researching the Yellow Pages as an alternative way to drive interest and exposure. Influencer marketing is still a viable tool to grow your business - and shows no signs of slowing down with an expected industry valuation of $16.4 billion by the end of the year.
Absolutely.
As a brand, you can still work with influencers of all sizes whether they’re subject matter experts or brand ambassadors. The only thing that’s changed is how influencers can speak about your products.
It’s a big no-no from now when it comes to testimonials and personal opinions. That also means no ‘Before’ and ‘After’ photos after using a new skincare product for a week.
Put simply, factual info is in. Personal reviews are out.
However, testimonials and rave reviews from people who haven’t been incentivised (whether through a gift or payment) are still permitted. So if your audience loves your products and posts a glowing review, you won’t land in the TGA’s bad books. 😉
As the expression goes, change is inevitable but growth is optional.
The latest TGA updates may have caused a shock, but they bring the rules for influencers in line with all advertising for therapeutic goods - and that's a GOOD thing.
Influencers now fall under the same TGA requirements as other advertising formats, like TV. This means consumers can place trust in the social media thought leaders they look up to and follow. And brands can feel comfort that the regulation of influencer marketing is a sign of its continued growth and success as a mainstream marketing channel.
From sunscreens to protein powders and plenty of therapeutic products in between, these changes are an opportunity for your brand to reconsider your relationship with influencers. Influencer marketing is a specialist skill set, now more than ever. So consider partnering with a reputable agency to make sure your influencer fully understands their responsibilities, promotes trust and credibility in your brand, and keeps you from falling foul of new legislation.
Looking to implement an influencer strategy but don’t know where to start? Click here to learn how The Influencers can work for your brand
From strategy, briefing to content delivery & reporting - we’re your influencer marketing agency with end to end support for your next campaign
Get in touch
