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Influencer Marketing Part 2: Legal Considerations

Welcome to part 2 of our series on influencer marketing. Whether you are a high-profile influencer, a household name, or a micro-influencer with a smaller following, you are all bound by the same legal requirements. Social media endorsements are a form of advertising and, as such, are governed by various laws, particularly those relating to advertising, e-commerce, digital marketing, and consumer protection.

In the UK, the primary legal framework for influencer marketing is the UK Advertising Codes, enforced by the Advertising Standards Authority (ASA). These codes require that all advertising, including influencer marketing, be fair, transparent, and truthful.

While the benefits of influencer marketing are clear, businesses and influencers must navigate various legal and regulatory requirements to ensure compliance. Key considerations include:

  • Written Contracts: Clear contractual agreements should be in place, outlining roles, responsibilities, obligations, deliverables, and payment. Intellectual property rights and content usage terms should be explicitly addressed to prevent disputes.
  • Disclosures and Transparency: Influencers must clearly state when they are being paid to promote a product or service or when they have received free products or incentives. Disclosures should be obvious and not hidden. Common disclosure hashtags include #ad, #sponsored, or #gifted. The ASA advises against vague terms like #collab or #partnership, as they may not be immediately clear to all audiences.
  • Honesty and Accuracy: Influencers must ensure that any claims made about a product or service are truthful and substantiated by evidence. Misleading consumers can result in legal consequences.
  • Brand Reputation Management: Businesses must vet influencers to ensure their values, past behaviour, and public image align with the brand. This reduces the risk of reputational harm caused by controversies or misleading endorsements.

Influencer marketing presents significant opportunities for businesses in the UK, but it also requires careful consideration of various legal aspects. Failing to comply with the ASA and all other applicable laws could lead to legal action, penalties, removal of content and damage to brand reputation. To discuss your legal requirements in further detail contact the commercial team on 02920 345511 or commercial@berrysmith.com .