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In-House Counsel Perspective on Negotiating Social Media Influencer Contracts
In the golden age of television, when Mr. Whipple touted Charmin and the Maytag Man spun washers and dryers, it was obvious such characters were fictional product advocates. But in today's world of social media "influencers," many of them entertainment celebrities, confusion abounds as to whether these modern masters of messaging actually use or believe in the products they're endorsing.
With the Federal Trade Commission (FTC) amping up its scrutiny in this space, in-house counsel has an opportunity to mitigate risk and help their companies get more bang for their influencer marketing buck. That means being proactive in drafting contracts with influencers and sweating the details — from morals clauses to guardrails for messaging to how and whether the company can reuse influencer content down the road.
"Coming from an in-house perspective, the last thing you want is a letter on your desk from the government that is entitled 'Notice of Proposed Penalty Offense,'" said Sarah La Voi, a partner who specializes in media and telecommunications at Baker & Hostetler. "I promise the executives will have questions, and in-house counsel wants to have answers," La Voi said during the law firm's recent webinar on social media influencers.
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