Influencers have become powerful figures in marketing and advertising.
As they often create content on social media platforms about a specific subject (e.g., beauty products), their capacity to drive consumers to buy certain products has captured the interest of brands and e-commerce platforms. Their ability to recommend or endorse products has transformed them from content creators on social media platforms into a marketing strategy to promote products online.
Following these new marketing practices, regulatory bodies have implemented specific requirements to influencers. These legal requirements of endorsements and recommendations vary around the world, but to a certain extent, they all have in common that they require the disclosure of a promoted campaign, as well as certain due diligence with the nature of the product.
"Influencer marketing is powerful, but comes with legal responsibilities. Disclosures, honesty, and transparency are key to staying compliant and building trust. Missteps can lead to legal trouble for influencers and brands. Know the rules! #InfluencerMarketing #LegalTips"
Influencers Marketing Legal Requirements
Here are the key components of the influencers marketing:
- Disclosure Requirements: Influencers must disclose their relationships with brands when promoting products. The disclosure should be clear, conspicuous, and easy to understand. Influencers can use phrases like “paid partnership,” “sponsored,” or “ad” to indicate that they have received compensation for their endorsement.
- Proximity and Prominence: disclosures should be placed in a way that is easily noticeable and not buried in hashtags or small print. For example, a disclosure should be placed at the beginning of a post or video rather than at the end. For platforms with character limitations, such as Twitter, influencers should still aim for clarity and visibility.
- Honesty in Claims: Influencers are required to provide honest opinions about products and services. If an influencer makes claims about a product’s effectiveness, they must have adequate substantiation to support those claims.
- Endorsements: when influencers present themselves as experts in a particular field, they must have relevant credentials or experience to support their claims.
Best Practices for Influencers and Brands
To navigate the complex landscape of influencer marketing and ensure compliance, both influencers and brands should consider the following best practices:
- Develop Clear Disclosure Policies: Brands should provide influencers with clear guidelines on disclosure requirements. Influencers should familiarize themselves with these guidelines and ensure they are consistently applied in their content.
- Educate Influencers: Brands should invest in educating influencers about the legal implications of their endorsements (e.g., training sessions).
- Monitor Compliant Practices: Brands should regularly monitor influencer content to ensure compliance with their marketing policies as well as the applicable regulations. This proactive approach can help identify potential issues before they escalate.
- Foster Authentic Relationships: Influencers should prioritize authenticity in their endorsements. Genuine recommendations resonate more with audiences and can lead to long-term partnerships built on trust.