Brands often overlook the legal aspects of influencer marketing, leading to costly disputes and FTC violations. This episode provides essential guidance for ecommerce operators to navigate influencer contracts, disclosures, and usage rights, safeguarding their businesses from potential legal pitfalls.
Key takeaways
Always secure usage rights in writing for all content from influencers, clearly defining the scope and duration of use to avoid publicity rights violations (e.g., a model seeing her face on a product she didn't approve for that use case).
When running sweepstakes or giveaways, ensure full compliance with platform-specific rules (e.g., Instagram's contest guidelines) and federal/state laws, including having clear official rules and understanding registration requirements in certain states.
Recognize that even top-tier influencers can make legal missteps; proactively educate your team and legal counsel on evolving advertising laws, especially concerning FTC disclosure requirements for sponsored content.
Prioritize clear, legally sound contracts with influencers that specify payment terms, deliverables, usage rights, and disclosure obligations to prevent misunderstandings and legal challenges.
In this episode, we talk to Robert Freud, an advertising attorney, to discuss the legalities of influencer marketing. We cover various topics such as FTC regulations, Mr. Beast's recent giveaway controversy, and usage rights for brand content. The conversation emphasizes the importance of understanding the legal side of influencer marketing to avoid abuse and legal issues.
TIMESTAMPS
[03:10]: Robert's background
[04:17]: Robert's transition into influence marketing
[07:15]: Mr.Beast viral giveaway
[10:12]: Robert's craziest case relative to influencer marketing
[13:43]: Consequences of breaking lawsuits
[18:03]: Attorney opportunities on influencer lawsuits
[20:28]: Percentage of brands caught with lawsuits
[23:31]: Who's liable, the brand, agency, or Influencer?[24:58]: What is the Federal Trade Commission?
[27:06]: FTC's purpose
[28:38]: Calculating the amount to sue for
Cody Wittick: Twitter
Taylor Lagace: Twitter
Frequently asked about this episode
What does this episode say about brand protection?
Always secure usage rights in writing for all content from influencers, clearly defining the scope and duration of use to avoid publicity rights violations (e.g., a model seeing her face on a product she didn't approve for that use case).
What does this episode say about influencer marketing?
When running sweepstakes or giveaways, ensure full compliance with platform-specific rules (e.g., Instagram's contest guidelines) and federal/state laws, including having clear official rules and understanding registration requirements in certain states.
What does this episode say about legal compliance?
Recognize that even top-tier influencers can make legal missteps; proactively educate your team and legal counsel on evolving advertising laws, especially concerning FTC disclosure requirements for sponsored content.
What does this episode say about risk management?
Prioritize clear, legally sound contracts with influencers that specify payment terms, deliverables, usage rights, and disclosure obligations to prevent misunderstandings and legal challenges.
