Things to Consider When Hiring a Social Media Influencer – Part Two

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This is a follow-up to our prior article on considerations to make when hiring a social media influencer. Part One focused on complying with the FTC regulations along with guidance on establishing internal policy, and this sequel will focus on executing social media influencer agreements.

Executing a Social Media Influencer Agreement

One of the first considerations your business should make is deciding whether to enter into an arrangement with the social media influencer directly or indirectly through an agency. Neither option is necessarily better than the other. Next, the company should have someone responsible for monitoring the social media influencer’s posts (this may be done internally or externally through an outside firm).

Drafting the agreement itself is incredibly important because not only do you need to ensure it is legally compliant, but your business’ reputation is also on the line.

What should the agreement include?

Basic Business Terms

  • Compensation or other incentives;
  • The frequency of posts required during the arrangement;
  • The specific social media platforms on which the posts should be made;
  • Whether the company requires a review of any posts before being published; and
  • Identifying the remedies for non-compliant posts.

Protecting the Company from any false advertising claims by:

  • Requiring social media influencers to review and comply with the FTC Endorsement Guidelines;
  • Letting social media influencers know that their posts should reflect their honest beliefs, experiences, and opinions;
  • Prohibiting any false or misleading statements about the company’s product or service which is the subject of the campaign;
  • Providing a list of claims about the company’s product or service that the company has substantiated; and
  • Striking a balance between providing guidance to your social media influencer on what they cannot say but avoiding specifications on what the influencer should say.

Miscellaneous

  • Prohibiting social media influencers to buy followers, to use bots to grow engagement, and to post fake sponsored content;
  • Ensuring and requiring the social media influencer makes the appropriate clear and conspicuous disclosures about their material connection to your company within their posts; and
  • Requiring the posts comply with the specific social media platform guidelines for branded content in addition to those required by the FTC.

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.

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