The digital age has ushered in a wave of influencer marketing that has become one of the most powerful marketing tools to reach consumers. It is estimated that 70 percent of online shoppers rely on social networks to discover new products and services. Companies have quickly adapted to this new reality by leveraging influencers to reach more potential customers and drive sales.
However, along with this potential for success come potential legal risks for companies leveraging influencers for marketing campaigns. Navigating the legal landscape of influencer marketing is a complex endeavour, for both the companies and the influencers.
To ensure success and avoid legal issues, companies utilising influencers for their marketing campaigns need to be aware of this complex legal landscape and ensure compliance with all applicable laws. This article will provide an overview of the key legal considerations of an influencer marketing campaign, from the initial supervisory framework to the contractual arrangements with the influencers.
Supervisory Framework
Companies should first develop a supervisory framework establishing their policy on influencer marketing. The framework should include rules and guidelines covering the selection of influencers, the approval of engagement or postings, health claims, false or misleading advertising, foreign markets, data protection and child protection.
The rules and guidelines of the supervisory framework should be followed throughout the life of the influencer campaign, with periodic reviews to ensure compliance.
Selecting Influencers
When selecting influencers, companies must ensure that the influencers are authentic and reliable sources of information. Companies should vet the influencers and review their profile, history, posts and reviews to ensure that the influencer is appropriate for the company’s product or service.
The influencers should also be carefully selected to ensure that their posts match the company’s values and that their followers are likely to be receptive to the company’s messages. Companies should also ensure that the messages of the influencer are in compliance with applicable laws and industry regulations.
Approving Engagements and Posts
To ensure compliance, companies should also approve all engagements and posts of the influencers before they are shared, including any text, images or videos. Companies should review these engagements and posts to ensure that they are accurate, not mislead consumers and are in compliance with applicable laws and industry regulations. Any necessary changes should be communicated to the influencers and the engagements or posts should not be shared until they are approved.
Health Claims
When using influencers to advertise health products, companies should be aware of the special legal and regulatory requirements, including State and Federal laws. Companies should ensure that the influencers comply with all regulations, including ones around issuing health claims, not making false promises and being honest and accurate in all postings.
False and Misleading Advertising
Companies should also ensure that the influencers do not make false or misleading statements about the company, its products and services. Social media posts should only contain representations that can be substantiated by the company, with clear disclaimers if appropriate.
Foreign Markets
Companies must be aware of the nuances of international laws when marketing in a foreign country. Companies should ensure that their campaigns do not violate any national laws, industry regulations and / or local customs. Companies should also ensure that their influencers are aware of any local legal requirements when posting to foreign markets.
Data Protection
When using influencers, companies should ensure that all personal data collected or used is handled in compliance with applicable data protection laws such as the General Data Protection Regulation (GDPR). Companies should also ensure that their influencers are aware of the data protection requirements and that they comply with them.
Child Protection
Companies should also ensure that all influencers comply with applicable child protection laws. Companies may be liable for any postings by influencers that violate these laws, even if the company did not know or could not reasonably have known about them. Companies should also be aware of any age limits when marketing with influencers, as some countries restrict marketing to minors.
Contractual Arrangements with Influencers
Once the selection of the influencers is completed, companies should enter into contractual arrangements with the influencers. Companies should ensure that any contracts are drafted in compliance with applicable laws and industry regulations. The contract should include clauses covering the scope of the campaign, payment terms, the posting policy, the company’s intellectual property rights and any other relevant matters.
Navigating the legal landscape of influencer marketing is a complex process. Companies need to be aware of the legal risks associated with leveraging influencers for their campaigns and ensure compliance with all applicable laws. To ensure success and avoid potential legal issues, companies should establish a supervisory framework, select influencers carefully, approve all engagements and posts, and enter into clear contractual arrangements with the influencers.