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Ep #024: Navigating the Legalities of Influencer Marketing (with Robert Freund)

The Bottom Line: Ecommerce Tactics for Profitable Growth · with Robert Freund · May 31, 2023 · 33 min

Summary

Ecommerce brands leveraging influencer marketing need to understand the legal landscape to avoid costly pitfalls. This episode breaks down crucial legal considerations, from FTC compliance and giveaway regulations to usage rights for influencer content, providing actionable advice to protect your brand and ensure compliant campaigns.

Key takeaways

Themes

influencer & creatorbrand & contentfinance & fundraising

Topics covered

influencer marketing legalitiesftc compliancegiveaway rulescontent usage rightspublicity rightsfalse advertising class actionsinfluencer contracts

Episode description

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

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Frequently asked about this episode

What does this episode say about influencer & creator?
Always secure explicit written agreements for content usage rights with influencers to avoid legal disputes, specifying where, how, and for how long their content can be leveraged.
What does this episode say about brand & content?
Ensure all giveaways and contests rigorously adhere to platform-specific rules (e.g., Instagram's terms of service) and state-specific sweepstakes laws, including clear official rules and registration where required.
What does this episode say about finance & fundraising?
Prioritize FTC disclosure compliance in all influencer partnerships; influencers must clearly and conspicuously disclose their paid relationship with your brand to consumers.
What does this episode say about influencer & creator?
Conduct regular audits of influencer-generated content usage across all your channels to ensure it aligns precisely with your contractual agreements and avoid unauthorized use or scope creep.
What does this episode say about influencer & creator?
Recognize that "publicity rights" protect an individual's name, image, and likeness; using any identifiable aspect without explicit written permission can lead to lawsuits and legal headaches for your brand.

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