Australia’s social commerce market is now worth an estimated AUD 27.7 billion. That figure covers everything from a friend tagging a product in an Instagram story to a full checkout inside a TikTok livestream. For anyone running a business in Australia, that number signals a shift in how people actually buy things. They’re not always searching Google or walking into a shop anymore. They’re buying where they already scroll.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
Most of that activity concentrates in Sydney, Melbourne, and Brisbane. Those cities have high internet penetration and a population that’s comfortable buying through a feed. But the rules have tightened. The Australian Consumer Law now applies directly to social commerce, with the Treasury Laws Amendment (More Competition, Better Prices) Act 2022 strengthening protections around unfair contract terms and misleading conduct. If you’re selling through social channels, you’re not just posting content. You’re running a regulated retail operation. Here’s what you actually need to know.
Social commerce is simply buying and selling products directly through social media platforms. It’s not advertising that sends someone to a separate website. The transaction happens inside the app. That distinction matters because the legal framework treats it as a point-of-sale environment, not a marketing channel. The
applies the same way it would to a physical store. What I tend to notice is that sellers treat social posts as casual content, but the ACCC sees them as commercial representations. That gap is where problems start. If you’re building a social commerce business, you might also want to look at starting an online jewellery store in Australia for a related product-based approach.
What Changes When You Ignore Compliance in Social Commerce
The financial risk of getting social commerce wrong is not theoretical. The Treasury Laws Amendment Act 2022 gave the ACCC stronger powers to challenge unfair contract terms. Before the amendment, a term had to cause detriment. Now, a term can be declared unfair even if no one has suffered yet. That changes the calculus for standard social commerce practices like automatic subscription renewals or non-refundable deposits buried in terms and conditions.
The operational cost is less visible but more common. If a customer buys through a social post and the product doesn’t match the description, they have the same refund rights as any online purchase. Sellers who ignore those rights face chargebacks, platform suspensions, and negative reviews that kill future sales. For sole traders, the liability is personal. For limited companies, directors can be held responsible for misleading conduct. The distinction matters because many small sellers operate as sole traders and assume social selling is informal. It isn’t.
What I’d weigh here is the cost of compliance versus the cost of a single enforcement action. A clear refund policy and accurate product descriptions cost nothing. A penalty for misleading conduct can run into six figures before legal fees.
Where Social Commerce Sellers Get It Wrong
Treating Influencer Posts as Personal Opinion
When an influencer promotes a product for payment or free goods, that post is a commercial communication under the ACL. It must not be misleading. A common mistake is letting influencers make claims about results that the product cannot consistently deliver. If a skincare product is promoted as curing acne and it doesn’t, both the brand and the influencer can be liable. The fix is straightforward: provide influencers with approved scripts and require them to disclose the commercial relationship. The ACCC has made it clear that undisclosed sponsorships breach the law. A simple “ad” or “sponsored” label at the start of the post satisfies the disclosure requirement.
Hiding Fees or Terms in the Checkout Flow
Social commerce platforms often compress the checkout process into a few taps. That speed can lead sellers to bury shipping costs, handling fees, or return restrictions in a link. The ACL requires that pricing be clear and accurate at the point of sale. If a customer sees AUD 29 but the final charge is AUD 45 after fees, that’s misleading conduct. The remedy is to show the total price, including all mandatory charges, before the customer confirms the purchase. If you use a platform that doesn’t support that display, you may need to switch to a tool that does. Shopify allows you to configure checkout to show all costs upfront, which helps avoid this issue.
Ignoring Refund Rights in the Terms
Some sellers try to limit refunds by stating all sales are final. Under the ACL, consumers have a right to a refund if a product is faulty, not fit for purpose, or doesn’t match the description. A term that removes that right is void. The mistake is writing terms that conflict with the law and assuming they’ll hold up. They won’t. The practical step is to align your refund policy with the ACL’s consumer guarantees. If you’re unsure what those guarantees are, the ACCC website has a clear breakdown. What I’d add is that this mistake is the most costly because it erodes trust faster than any other. Customers who feel cheated leave public reviews that other buyers see before they even reach your product page.
Using Vague Product Descriptions
Social commerce relies on short copy. But brevity isn’t an excuse for vagueness. If a product description says “high quality” without specifying materials, size, or origin, and the customer receives something different, the seller has likely engaged in misleading conduct. The solution is to include the key specifications in the post or in a pinned comment. For physical products, dimensions, materials, and country of origin are the minimum. For digital products, system requirements and delivery method matter. A product description template can help standardise this information across multiple listings.
How to Set Up a Compliant Social Commerce Operation
Map Your Legal Obligations Before You List
Before you post a single product, identify which parts of the ACL apply to your specific offering. If you sell physical goods, you need to comply with consumer guarantees on quality and safety. If you sell services, the rules around misleading conduct and unfair terms still apply. The Treasury Laws Amendment Act 2022 specifically strengthened protections around unfair contract terms in standard form contracts. That means your terms of sale, if they’re a take-it-or-leave-it document, must not contain terms that create a significant imbalance. The process is to review your terms against the ACCC’s guidance on unfair contract terms. If you find terms like automatic renewal without notice or unilateral price increases, remove them.
Set Up Transparent Pricing and Checkout
Your checkout flow must show the total price, including GST, shipping, and any handling fees, before the customer confirms. If you use a platform that hides fees until the last step, reconfigure it. The ACL requires that pricing representations be clear. That means no asterisks that lead to a page of exceptions. If you offer a discount, state the original price and the discounted price. If the discount is conditional, state the condition in the same sentence. For sellers using multiple platforms, consistency is key. A product priced at AUD 49 on Instagram should not be AUD 39 on TikTok with AUD 15 shipping. That discrepancy can be seen as misleading. Use a central inventory system that syncs pricing across channels.
Manage Influencer and Testimonial Practices
Every commercial relationship with an influencer must be disclosed. The disclosure must be clear and prominent. A hashtag like #ad at the end of a long caption may not be sufficient. The ACCC has indicated that disclosures should be upfront. The practical step is to include the disclosure in the first two lines of the post or in the video itself. For testimonials, you must not use fake reviews. If you pay for a review, that must be disclosed. If you remove negative reviews, that can be seen as misleading. The safest approach is to allow all verified reviews to remain, positive or negative, and respond to negative ones publicly. That builds trust and keeps you compliant.
Prepare for Future Regulatory Changes
The regulatory environment for social commerce is not static. The Treasury Laws Amendment Act 2022 was a significant tightening, and further changes are likely as the market grows. The ACCC has signalled increased scrutiny of digital platforms. What that means for sellers is that compliance is not a one-time task. You need to monitor changes to the ACL and to platform-specific policies. A practical approach is to set a quarterly review of your terms, disclosures, and influencer agreements. If you use a business law service for contract reviews, schedule those reviews on a recurring basis. The cost of a missed regulatory change is far higher than the cost of a regular check.
→ Scroll right to see all columns
| City | Key Advantage | Regulatory Focus |
|---|---|---|
| Sydney | Highest internet penetration, strong digital payment adoption | ACCC enforcement on misleading ads |
| Melbourne | Tech-savvy population, vibrant retail environment | Unfair contract terms in standard form contracts |
| Brisbane | Growing e-commerce base, high mobile commerce usage | Consumer guarantees and refund rights |
Frequently Asked Questions About Social Commerce in Australia
Do I need an Australian Business Number (ABN) to sell through social media? ▾
Can I be held personally liable for misleading social posts if I operate through a company? ▾
What happens if a customer disputes a charge after buying through a social platform? ▾
Are there specific rules for selling food or cosmetics through social commerce? ▾
Do I need to display my refund policy on every social post? ▾
Can I use user-generated content as testimonials without permission? ▾
The Real Cost of Treating Social Commerce as Casual Selling
The AUD 27.7 billion figure is not just an opportunity. It’s a measure of how many transactions are now subject to the full weight of Australian Consumer Law. Sellers who treat social commerce as a casual side project are the ones most likely to face enforcement, chargebacks, and reputational damage. The sellers who treat it as a regulated retail channel from day one are the ones who build sustainable businesses. The difference is not in the product. It’s in the compliance structure around it.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read why website flipping is the next big opportunity in Australia.
Sources and Further Reading
10 reasons to start an online jewellery store in Australia — A practical guide for product-based sellers entering the Australian e-commerce space.
Why starting an online DIY store is a smart move in Australia — Explores another retail category with strong social commerce potential.
Ken Research (2024). Australia Social Commerce Market. 🔗
Australian Government (2022). Treasury Laws Amendment (More Competition, Better Prices) Act 2022. 🔗
Australian Competition and Consumer Commission. Australian Consumer Law. 🔗
