The Legal Issues That Influencers and Marketers Must Get Right

"The popularity and growth of this industry have not come without its challenges, however. For example, in August 2018 the Competition & Markets Authority (CMA) launched a probe into the practices of certain celebrities and online stars engaged in brand marketing and advertisements. The CMA published its findings in January 2019, drawing the rules of disclosure and compliance with consumer protection legislation into the spotlight."

"The CMA investigation was a pivotal and highly publicised moment, which sent a clear message to the industry, namely that all incumbents involved in this sector need to be alive to the complex web-work of commercial and legal rules and regulations that surround this space."

"Brand services agreement These agreements comprise the main contract forming the commercial and legal basis of any influencer marketing campaign. They set out the respective obligations of the brand, agency and talent that are involved. These contracts contain the terms on which the influencer provides the marketing services to the brand, whether acting through a platform, agency or working directly with the brand itself."

Influencer marketing has experienced exponential growth, becoming a $10 billion industry integral to modern marketing campaigns. However, this rapid expansion has created significant challenges. The Competition & Markets Authority's 2018 investigation and 2019 findings revealed that influencer marketing involves complex commercial and legal obligations beyond simple sponsored posts. The CMA's scrutiny emphasized the need for heightened compliance with consumer protection legislation and disclosure rules. Brand services agreements form the foundation of influencer marketing campaigns, establishing the commercial and legal basis between brands, agencies, and influencers. These contracts outline respective obligations, campaign terms, deliverables, posting requirements, and platform specifications.

Read at Thedrum