Hiring a social media influencer is not as simple as you might think. When you want to hire a social media influencer to promote your company, there are many business and legal considerations to make. In this two-part series, we will discuss compliance with the Federal Trade Commission (“FTC”) Regulations and Guidance, Establishing Internal Policy, and Executing Social Media Influencer Agreements. Part One will focus on complying with the FTC Regulations and Guidance and Establishing Internal Policy, and Part Two will focus on Executing Social Media Influencer Agreements.
Complying with the FTC Regulations and Guidance
The FTC provides a plethora of guidance when it comes to legal compliance for social media influencers. You should ensure that your relevant departments along with your social media influencers are up to date on all the Guidance that the FTC provides. A starting point is the FTC’s Guides Concerning the Use of Endorsements and Testimonials in Advertising which can be found here.
When drafting an agreement with a social media influencer, you should put them on notice to review and comply with the following:
- The FTC’s Endorsement Guides: What People Are Asking
- FTC: The Do’s and Don’ts for Social Media Influencers
- FTC: Disclosures 101 for Social Media Influencers
- FTC: Do you endorse things on social media?
Establishing and Following an Internal Social Media Endorsement Policy
Before hiring any social media influencers, the company should draft and adopt a written social media endorsement policy that will comply with FTC Endorsement Guidelines.
This policy should outline various issues relating to endorsements, such as defining when third parties (social media influencers and celebrities) become “sponsored endorsers”, how to disclose material connections in a clear and conspicuous manner, and identifying the expectations and responsibilities of monitoring sponsored endorsers.
Look out for Part Two on how to execute a social media influencer agreement.
For more information about the FTC guidelines and how we can assist you with adopting an internal social media endorsement policy, contact us at info@mnklawyers.com.
This material is provided for informational purposes only. It is not intended to constitute legal advice, nor does it create a client-lawyer relationship between MNK Law and any recipient. Recipients should consult with counsel before taking any actions based on the information contained within this material.
