An Influencer Lawyer Helping Brands & Influencers
Maximize The Potential Present In Influencer Marketing
With the proliferation of social media and the emergence of influencers with sizeable and intensely loyal followings, creators and brands alike have seen mutually beneficial opportunities in the realm of influencer marketing campaigns, and competition in the space is increasingly heating up. One of the core drivers of the billions of dollars poured into influence marketing revolves around the potential for significantly outsized positive returns compared to traditional PPC or other digital efforts for brands ranging from those in e-commerce to healthcare. In addition to brands leveraging influencer marketing, political campaigns are getting in on the action, too, though the compliance obligations in this context are less clearly defined.
Further, with the increasing regulatory privacy constraints, such as the GDPR and CPRA, and technical restrictions being put on targeted advertising, such as Apple’s App Tracking Transparency (ATT), native advertising strategies, such as influencer marketing, are playing a more prominent role. There are also more general best practices and strategies to ensure that campaigns with influencers do not suffer from bad press, such as was illustrated in the controversy concerning wording in an agreement with influencers promoting Google’s Pixel 9 phone.
Enforcement by regulators, as well as associated guidance such as from the Federal Trade Commission (FTC), aimed at ensuring compliance from influencers and brands alike, include the following recent actions:
- FTC Fines Car Companies $10 Million Calling Out Influencers and Endorsers: This summer, the Federal Trade Commission (FTC) has turned up the heat on two companies that provide extended car repair coverage, CarShield and American Auto Shields, for deceptive and misleading advertising and telemarketing activities. The agency also named and shamed certain celebrity influencers and professional athletes for endorsing false statements in their advertisements.
Beyond compliance with laws, successful influencer marketing campaigns between brands and influencers have key clauses and scenarios accounted for in their contractual agreements, including but not limited to the following:
- Scope of Work: Detailed description of deliverables, content types, platforms, and timelines.
- Compensation: Payment terms, amounts, schedules, and any performance-based incentives.
- Intellectual Property Rights: Ownership and usage rights for created content.
- Approval Process: Guidelines for content review and approval before publication.
- FTC and Other Compliance: Requirements for proper disclosure of sponsored content.
- Exclusivity: Restrictions on working with competing brands during the campaign period.
- Confidentiality: Protection of sensitive information shared during the collaboration.
- Termination Conditions: Circumstances and procedures for ending the agreement early.
- Morality Clause: Provisions allowing termination due to influencer misconduct or reputation damage.
- Content Distribution: Specific requirements for posting and promoting content across platforms.
- Performance Metrics: Agreed-upon KPIs and reporting requirements.
- Revisions and Edits: Process for requesting and implementing content changes.
- Usage Rights: Terms for brand’s use of influencer’s content, image, or likeness beyond the initial campaign.
- Cancellation Fees: Compensation owed if either party cancels the agreement prematurely.
At RICHT, we are influencer lawyers helping clients on both the brand and creator sides capitalize on mutually beneficial opportunities and avoid legal risks present in influencer marketing campaigns. Our experience and ability to fuse business know-how with legal acumen allow us to bring a unique perspective focused on adding value that meaningfully moves the needle. Our core focus areas in our influencer marketing practice include contract drafting and negotiation, FTC disclosure compliance, regulatory advisory, and dispute resolution between brands and creators, among other advertising compliance.
Influencer Marketing Law Services We Offer
Contract Drafting & Negotiation For Brands & Influencers
Trademark & Copyright Law
Health Claims Law
SEC & Other Sector-Specific Regulatory Considerations
Clients We Serve
D2C Brands
Financial Services
Healthcare & Life Sciences
Digitally-Native Influencers
Food & CPG
The FTC Warns Influencers to Disclose When They’re Paid to be Sweet on Aspartame
The Federal Trade Commission sent online health influencers warning letters for not disclosing they were paid for content about aspartame and sugar.
SEC Charges Crypto Entrepreneur Justin Sun and his Companies for Fraud and Other Securities Law Violations
Eight celebrities were also charged for illegal touting of Sun’s crypto asset securities.
FTC Proposes to Strengthen Advertising Guidelines Against Fake and Manipulated Reviews
The Federal Trade Commission is considering changes to tighten its guidelines for advertisers against posting fake positive reviews or manipulating reviews by suppressing bad ones—and warns social media platforms about inadequate disclosure tools.
FTC Puts Hundreds of Businesses on Notice about Fake Reviews and Other Misleading Endorsements
The Federal Trade Commission is blanketing industry with a clear message that, if they use endorsements to deceive consumers, the FTC will be ready to hold them responsible with every tool at its disposal.
