{"id":17282,"date":"2025-02-25T13:00:00","date_gmt":"2025-02-25T12:00:00","guid":{"rendered":"https:\/\/www.sortlist.com\/blog\/?p=17282"},"modified":"2025-02-17T22:44:15","modified_gmt":"2025-02-17T21:44:15","slug":"influencer-marketing-laws","status":"publish","type":"post","link":"https:\/\/www.sortlist.com\/blog\/influencer-marketing-laws\/","title":{"rendered":"Influencer Marketing Laws &amp; Contracts: Everything You Need to Know to Stay Compliant"},"content":{"rendered":"\n<p>According to <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/www.hubspot.com\/hubfs\/2024%20State%20of%20Marketing%20Report\/2024-State-of-Marketing-HubSpot-CXDstudio-FINAL.pdf?hubs_signup-url=www.hubspot.com%2Fstate-of-marketing&amp;hubs_signup-cta=Submit&amp;_gl=1*10yyqqa*_gcl_au*OTAzNTQxNjQ2LjE3MjgzMzYyMjU.&amp;_ga=2.194263209.567525328.1730745300-67785408.1711508115\">HubSpot<\/a>, 50% of marketers are using influencer marketing. A trend that is not going away anytime soon, and that has created a<strong> new challenge:<\/strong> how to regulate it and <strong>prevent fraud or deception <\/strong>in the marketplace. The governments of the <strong>United States <\/strong>and the <strong>United Kingdom<\/strong> have taken the lead in developing and enforcing influencer marketing laws.<\/p>\n\n\n\n<p>This blog post serves as a reference so that you have a clear understanding of what is expected of brands and influencers from a legal standpoint, but it <strong>does not constitute legal advice<\/strong>. We strongly recommend that you consult your legal team or <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/www.sortlist.com\/influencer-marketing\">influencer marketing agency<\/a> for guidance on how to <strong>stay compliant.<\/strong><\/p>\n\n\n\n<p>Failure to comply can result in penalties and fines that can damage your finances and reputation.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">US Influencer Marketing Rules and Regulations<\/h2>\n\n\n\n<p>Given the proliferation of influencer marketing campaigns, the United States has taken the lead in establishing strict controls to protect consumers from unfair and unethical practices.<\/p>\n\n\n\n<p>\u26a0\ufe0fIf you&#8217;re planning to launch an influencer marketing campaign in the United States, it&#8217;s also important to check any <strong>state or local regulations<\/strong>. States such as <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/www.dglaw.com\/new-laws-protecting-child-influencers-what-marketers-and-influencers-need-to-know\/#:~:text=Illinois's%20new%20child%20influencer%20law,a%20trust%20for%20the%20minor.\">Illinois<\/a> are working to include regulations and guidelines specifically related to <strong>children in the influencer marketing world.<\/strong><\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Federal Trade Commission (FTC Guidelines): Disclosure of Paid and Gifted Influencer Marketing Content<\/h3>\n\n\n\n<p>The <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/www.ftc.gov\/system\/files\/documents\/plain-language\/1001a-influencer-guide-508_1.pdf\">Federal Trade Commission (FTC)<\/a> is probably the most important guideline, as it enforces <strong>antitrust and consumer protection laws<\/strong> and requires companies to provide certain information when running influencer marketing campaigns.<\/p>\n\n\n\n<p>\u26a0\ufe0fIt states that<strong> all sponsored or paid endorsements<\/strong> shared in any form of media (videos, blogs, social media, etc.) must be labeled.<\/p>\n\n\n\n<p><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"489\" height=\"746\" src=\"https:\/\/cdn.blog.production.sortlist.cloud\/wp-content\/uploads\/sites\/2\/2025\/02\/image-13.png\" alt=\"Federal Trade Commission (FTC Guidelines) states that all sponsored or paid endorsements shared in any form of media (videos, blogs, social media, etc.) must be labeled.\" class=\"wp-image-17285\" srcset=\"https:\/\/cdn.blog.production.sortlist.cloud\/wp-content\/uploads\/sites\/2\/2025\/02\/image-13.png 489w, https:\/\/cdn.blog.production.sortlist.cloud\/wp-content\/uploads\/sites\/2\/2025\/02\/image-13-50x76.png 50w, https:\/\/cdn.blog.production.sortlist.cloud\/wp-content\/uploads\/sites\/2\/2025\/02\/image-13-288x439.png 288w, https:\/\/cdn.blog.production.sortlist.cloud\/wp-content\/uploads\/sites\/2\/2025\/02\/image-13-339x517.png 339w, https:\/\/cdn.blog.production.sortlist.cloud\/wp-content\/uploads\/sites\/2\/2025\/02\/image-13-373x569.png 373w, https:\/\/cdn.blog.production.sortlist.cloud\/wp-content\/uploads\/sites\/2\/2025\/02\/image-13-478x729.png 478w\" sizes=\"auto, (max-width: 489px) 100vw, 489px\" \/><\/figure><\/div>\n\n\n<p><\/p>\n\n\n\n<p>This can be done by adding hashtags (#ad or #sponsored) or by stating something like &#8220;In paid partnership with&#8230;&#8221;.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Alcohol and Tobacco Tax and Trade Bureau: Mandatory Disclosures for Influencer Marketing Content Promoting Alcoholic Beverages&nbsp;<\/h3>\n\n\n\n<p>The U.S. <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/www.ttb.gov\/public-information\/industry-circulars\/ttb-industry-circular-2024-1\">Alcohol and Tobacco Tax and Trade Bureau (TTB)<\/a> has also established regulations for content that promotes alcoholic beverages in social media and influencer marketing.<\/p>\n\n\n\n<p>In addition to identifying when a post or content is sponsored by a specific brand, it states that<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Advertisers must clearly and conspicuously <strong>disclose important information<\/strong> about their products, such as brand names and alcohol content, in social posts.<\/li>\n\n\n\n<li>Third-party content that is <strong>&#8220;liked&#8221; or reposted<\/strong> by an industry member must itself comply with TTB regulations.<\/li>\n\n\n\n<li>\u26a0\ufe0fCompanies are <strong>responsible <\/strong>for ensuring that influencers and third-party content comply with these rules.<\/li>\n\n\n\n<li>Use of <strong>multimedia platforms<\/strong> (websites, blogs, social media, microblogs, mobile apps, etc.) requires that the platform itself be TTB compliant.<\/li>\n\n\n\n<li>\u26a0\ufe0fAll <strong>influencer posts <\/strong>must include required promotional disclosures, which can be accomplished by providing a link.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">UK Influencer Marketing Laws and Regulations<\/h2>\n\n\n\n<p>Back in 2021, the UK&#8217;s Advertising Standards Authority conducted an <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/www.burges-salmon.com\/news-and-insight\/legal-updates\/commercial\/social-media-influencers-on-notice-by-asa-over-widespread-failure-to-disclose-ads#:~:text=06%20April%202021-,'Unacceptable'%20levels%20of%20non%2Dcompliance,when%20ad%20is%20an%20ad.\">analysis<\/a> of more than 24,000 Instagram Stories, posts, IGTV and reels from 122 UK-based influencers. The result? Nearly 1 in 4 were considered promotional posts about products, services or brands. However, two-thirds were <strong>not clearly identified<\/strong> as influencer marketing content.<\/p>\n\n\n\n<p>Leading the UK&#8217;s Competition and Markets Authority (CMA) in creating and enforcing the CAP Code, with the overall aim of protecting customers and providing clear, easy-to-understand information.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Competition and Markets Authority (CMA): Disclosure of Paid and Gifted Influencer Marketing Content&nbsp;<\/h3>\n\n\n\n<p>The CAP Code states that any influencer communication must:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u26a0\ufe0fBe clearly identified and labeled as an advertisement, using clear and understandable language. For example #ad #advert.<\/li>\n\n\n\n<li>Should not falsely state or imply that the marketer is acting as a consumer.<\/li>\n\n\n\n<li>Should not mislead consumers about the content being promoted.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Other Laws and Regulations Influencers Need to Know<\/h2>\n\n\n\n<p>In addition, there are other regulations and laws not directly related to influencer marketing that every company and influencer should be aware of.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Intellectual Property<\/h3>\n\n\n\n<p>\ud83d\udcddProtects the <strong>rights of creators and owners<\/strong> of inventions, writings, music, designs, and other works, including content created for an influencer marketing campaign.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Copyright<\/h3>\n\n\n\n<p>\ud83d\udc69\u200d\ud83d\udcbbProtects <strong>original works<\/strong> such as books, music, movies, and software. In influencer marketing, this means that the influencer is the legal owner of all materials created for a brand or campaign, unless a specific clause in the contract states otherwise.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Fair Use<\/h3>\n\n\n\n<p>\u2705A legal exception that allows limited <strong>use of copyrighted material<\/strong> without the copyright owner&#8217;s permission, specifically for criticism, comment, news reporting, teaching, parody, research, as long as it is properly disclosed and legally obtained.<\/p>\n\n\n\n<p>Third-party content includes images of people, products, places, and any other content that you do not own.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Fair Advertising<\/h3>\n\n\n\n<p>\ud83d\udcccRequires that advertisements be truthful, honest and not deceptive. This law applies to all types of media, including print, television, radio, online and influencer marketing.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What To Include in an Influencer Marketing Program to Stay Compliant<\/h2>\n\n\n\n<p>As you prepare for your next influencer marketing campaign, keep in mind that laws and regulations are constantly evolving. Check with your legal team or <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/www.sortlist.com\/influencer-marketing\">influencer marketing agency<\/a> to understand the laws that apply to influencer marketing.<\/p>\n\n\n\n<p>In addition, we strongly recommend that you follow these tips:<\/p>\n\n\n\n<p>1\ufe0f\u20e3Create an <strong>influencer contract<\/strong> for each campaign and influencer you work with. Make sure it includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Legal names and addresses for both parties.<\/li>\n\n\n\n<li>The purpose of the contract.<\/li>\n\n\n\n<li>Effective date and length of contract.<\/li>\n\n\n\n<li>Types of content the influencer will create (posts, videos, etc.).<\/li>\n\n\n\n<li>Number of posts the influencer will create.<\/li>\n\n\n\n<li>Social media platforms that the influencer will use.<\/li>\n\n\n\n<li>Specific hashtags and mentions the influencer will use.<\/li>\n\n\n\n<li>Deadlines for creating and publishing content.<\/li>\n\n\n\n<li>Compensation strategy.<\/li>\n\n\n\n<li>Detailed instructions on content style, including brand guidelines, tone, voice, style, messaging, etc.<\/li>\n\n\n\n<li>Whether or not the content should be pre-approved by the brand.<\/li>\n\n\n\n<li>Exclusivity clause.<\/li>\n\n\n\n<li>Intellectual property section outlining who owns the rights to the content created by the influencer.<\/li>\n\n\n\n<li>A clause in your influencer agreement that ensures the influencer complies with laws, regulations and industry guidelines, including disclosure requirements for sponsored content and endorsements.<\/li>\n<\/ul>\n\n\n\n<p>2\ufe0f\u20e3Create a <strong>brief<\/strong> for your influencers that includes applicable laws, regulations and industry guidelines. Be sure to include any required labels for sponsored content. For example, #ad #sponsored.<\/p>\n\n\n\n<p>3\ufe0f\u20e3Set up a <strong>meeting <\/strong>with your influencer and explain the influencer marketing laws they need to follow. You can frame this as a way to protect both your brand and their name.<\/p>\n\n\n\n<p>4\ufe0f\u20e3Create a <strong>checklist <\/strong>to help influencers ensure that every post they share on social media or other digital channels complies with the appropriate laws.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>Influencer marketing laws are in place to protect your brand, your influencers, and most importantly, your consumers. Act now to ensure that every influencer campaign is compliant. Contact our <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/www.sortlist.com\/influencer-marketing\">influencer marketing agencies<\/a> for assistance.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to HubSpot, 50% of marketers are using influencer marketing. A trend that is not going away anytime soon, and that has created a new challenge: how to regulate it and prevent fraud or deception in the marketplace. The governments of the United States and the United Kingdom have taken the lead in developing and [&hellip;]<\/p>\n","protected":false},"author":83,"featured_media":17286,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_sb_show_comment_boards":false,"content-type":"","om_disable_all_campaigns":false,"footnotes":""},"categories":[1],"class_list":["post-17282","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-default"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Influencer Marketing Laws &amp; Contracts: Everything You Need to Know to Stay Compliant - Sortlist Blog<\/title>\n<meta name=\"description\" content=\"Discover essential guidelines for brands navigating influencer marketing laws. Stay compliant and enhance your campaigns. 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