This article complies a list of some legal issues that may arise when working with social media influencers.
Agreements with the influencer
When engaging with social media influencers, a contract should be formed to govern the duties of each party. Without a contract, disputes may arise if an influencer does not act in accordance to the companies expectations.
Social Media Policy
A social media endorsement policy governs how employees and social media influencers use social media related to the company. The policy establishes guidelines on endorsing a product, including but not limited to FTC disclosures, brand image, and IP related issues. Companies should train their employees on the policies and monitor influencers to follow the policies.
Intellectual property rights
There are many forms of intellectual property that are involved with social media influencers:
- Copyrights: There is copyright involved in posts of the social media influencer. This may be the social media influencer’s post itself, a post created by the company, or either the company or social media influencer using anther person’s copyrighted material.
- Trademarks: Trademarks are involved when the social media influencer is advertising for the brand. The usage may need a license and should follow company trademark guidelines. In addition, there may be trademark rights in hashtags and handles.
- Trade secret: If there is any trade secrets involved in the project, companies should take preventative measures to protect their trade secrets. This includes having an NDA or protecting any material given out.
Federal Trade Commission
The Federal Trade Commission, or FTC, have readily been enforcing deceptive advertising my social media influencers. The FTC may bring an action against social media influencers if the influencers are making false or misleading claims about the product. In addition, social media influencers should also be disclosing any material connections to the brand.
National Advertising Division of the BBB
The National Advertising Division, or NAD, is a division of the BBB. The NAD provides an alternate dispute resolution forum for consumers. Although the NAD is not a government agency, failure to cooperate with the NAD may result in the NAD referring the issue to the FTC.
Influencer disputes
Disputes with social influencers may come from a variety of reasons, including not following through with their commitments, not properly advertising the products, and making false claims. For business owners, doing due diligence on the influencer is very important. A business should research the influencer to see the type of work that has been done in the past. The more research and understanding how the influencer works, will help reduce the issues in the future, which may include costly litigation.