Social media influencer marketing that misleads the public is on the Canadian Competition Bureau’s (the Bureau’s) list of key priorities for the foreseeable future. Brands and marketing agencies that work with influencers (as well as influencers themselves) should abide by best practices to reduce the risks of getting wrapped up in a Bureau investigation for misleading advertising. You can read the full client briefing here.
There seem to be a lot of questions lately about the use of photographs on social media, so a recent federal court case may be of interest in raising some risks you may not have contemplated. The case involves some photos that professional models had posted to their social media pages, which they alleged had been copied and altered by a nightclub to make it appear that they worked at or endorsed the nightclub. (Moreland v. Beso Lounge & Restaurant LLC, case no. 3:19-cv-00958 (VLB) (D. Conn. Sept. 4, 2020) (2020 WL 5302312).)… Continue Reading
On June 17, 2020, the Southern District of New York issued an opinion and order in a complex matter between a social media gaming celebrity and a contract he signed with an esports and entertainment company. (Faze Clan, Inc., v. Tenney, 19-cv-7200 (JSR) (S.D.N.Y. July 17, 2020) (2020 WL 3318209).)… Continue Reading
The COVID-19 pandemic has forced many of us to adjust our usual work-life balance. Rather than maintaining the strict division between home and office, individuals have adapted to a new hybrid lifestyle, combining all under one roof. This new lifestyle has afforded many people with additional free time that would otherwise be spent commuting to the office. Unsurprisingly, people are choosing to use this free time to browse their favourite social media platforms. In Q1 of 2020, daily time spent in apps increased 20% on Android devices in comparison to last year.… Continue Reading
As the world struggles to move forward, our thoughts and support are with our readers and we hope for their good health and improving situations.
Today’s post involves an FTC settlement that was announced just as New York was going into “lockdown” mode and so we wanted to make sure it did not escape your attention. In March of 2020, the U.S. Federal Trade Commission (FTC) announced a settlement of its federal court complaint against a company that the FTC alleged made unsubstantiated health claims for its teas and skincare products—and used celebrity social media influencers whose endorsements did not … Continue Reading
Houseparty, the group video chat app that allows users to interact in “rooms”, is unsurprisingly becoming one of the most popular social media platforms in the current global environment. Distinguishing features are: (i) the ability to move between chat sessions happening simultaneously in other rooms; and (ii) the ability to play party games while chatting, which is a welcome distraction from the more serious conversation topics that tend to dominate our interactions at the moment!… Continue Reading
Social media influencer marketing has had a significant impact in the way brands reach consumers worldwide. Social media influencers are very important to platforms such as YouTube and Instagram and even more so to brands. As independent contractors, social media influencers garner more outreach than any company’s advertising team could ever hope to accomplish. From engagements like brand awareness and product placement and “authentic reviews,” according to Business Insider, the influencer marketing industry is expected to be worth up to $15 billion by 2022—up from $8 billion in 2019. Influencers, once a niche group, are now everywhere—we can spot … Continue Reading
On November 4, 2019, the U.S. Federal Trade Commission (“FTC”) issued guidance for social media influencers to help them comply with FTC requirements relating to endorsements and disclosures. We have previously covered FTC action and guidance (including advisory letters) in this area, but the FTC has refined and updated its advice a bit:… Continue Reading
Artificial intelligence (AI) is a field of computer science referring to intelligence demonstrated by machines, in contrast to the natural intelligence displayed by humans. Social media platforms use artificial intelligence technologies such as natural language processing to understand text data, and image processing for facial recognition.
In some instances, regulation tries to create a “legal” definition of AI. For example, a law requiring disclosure of chat bots defines “bot” as “an automated online account where all or substantially all of the actions or posts of that account are not the result of a person.” Article 22 of GDPR provides for … Continue Reading
How important are online reviews in your shopping experience? Many rely heavily on consumer reviews in order to generate business. But what happens when instead of providing customers the candid information that they deserve, companies try to silence their critics in order to improve their online reputation?
In recent years, companies selling products and services have included non-disparagement clauses (“gag clauses”) in their contracts in hopes of curtailing online criticism. Gag clauses are aimed at discouraging customers from writing honest reviews that criticize the company—and punished customers for their negative reviews in the form of liquidated damages. The problem is … Continue Reading
On April 10, 2019, a Texas federal judge granted Sparrow Barns & Events an emergency temporary restraining order and preliminary injunction in a trade dress and copyright infringement case, preventing defendant Ruth Farm from advertising its venue rental business on social media and the internet. Sparrow Barns & Events, LLC v. Ruth Farm Inc., No. 4:19-CV-00067 (E. D. Tex. Apr. 10, 2019) (2019 WL 1560442).)… Continue Reading
Last week, the UK Home Secretary unveiled tough new plans to regulate social media platforms in the White Paper ‘Online Harms’ (the Paper). The Paper sets out a regulatory framework to tackle illegal and harmful online activity, in a flagship move which will require careful attention from social media platforms operating in the UK.… Continue Reading
Influencer marketing is increasing in popularity in Canada and can be an effective way to promote your brand. Influencers are online personalities that use social media to share their expertise and opinion about products or brands with their followers. In order to tap into the influencer’s network, businesses pay or otherwise compensate influencers to share content that features their products or brand. Influencer marketing comes in all shapes and sizes. For example, it includes a social media model promoting a certain brand of makeup or an athlete recommending a particular piece of workout gear. Recently, even the Government of Canada… Continue Reading
The question of whether a public official may legally suppress dissent or criticism by banning dissenters from social media pages administered by the public official has recently entered the United States’ legal discourse. The Fourth U.S. Circuit Court of Appeals recently answered this question in Davison v. Randall, which was the first decision on the issue made at the federal appellate level. The implications of this decision could prove to be particularly significant, as President Trump is currently appealing a decision by the U.S. District Court for the Southern District of New York. In President Trump’s case, the district … Continue Reading
As organizations around the globe grapple with disinformation and fake news, the digital trade provisions in NAFTA’s successor may help assuage fears that internet content providers could be held responsible for such content. The US-Mexico-Canada Agreement (USMCA) contains important provisions dealing with the issues of free speech and digital trade.… Continue Reading
When Elon Musk, the Chairman and Chief Executive Officer of Tesla, Inc. (“Tesla”), posted to social media on August 7, 2018, that he was considering taking Tesla private at $420 per share and had secured funding, he caused a ripple in the markets and gained the attention of the United States Securities and Exchange Commission (“SEC”). As a result of the statement, the SEC filed a lawsuit against Musk in the United States District Court for the Southern District of New York for allegedly violating Section 10(b) of the federal Securities Exchange Act of 1934 (the … Continue Reading
Texas lawyers are permitted to ask their lawyer friends on social media for help with legal questions on behalf of their clients, according to a recent opinion from the State Bar of Texas’ Professional Ethics Committee (“PEC”). The PEC is a committee appointed by the Texas Supreme Court that issues opinions on various ethics and professional responsibility questions posed by members of the State Bar of Texas.
Opinion No. 673, issued in August, addressed two questions: 1) Does a lawyer violate the Texas Disciplinary Rules of Professional Conduct by seeking advice on behalf of a client from other lawyers … Continue Reading
There has been an increase in cyberbullying with the rise of social media. According to the Canadian government, “cyberbullying involves the use of communication technologies … to repeatedly intimidate or harass others”. Federal and provincial governments have effected legislative change to make harmful cyberbullying behaviours criminal or at least provide civil remedies for those harmed. Other methods of deterring cyberbullying include education and policies implemented by social media platforms. Cyberbullying is not limited to children and teens. Similar to schools, workplaces should have policies and guidelines in place which provide for a safe environment for their employees.… Continue Reading
On June 21, 2018, the U.S. Supreme Court declined to decide the question of whether a district court judge is required to retroactively recuse himself when he allegedly follows the federal prosecutors on Twitter and, within hours after denying relief to the defendants, tweeted a link to an allegedly erroneous news article with a title implying that the defendants were liable. The relevant 9th Circuit opinion here is U.S. v. Sierra Pacific Industries, Inc., which was published on July 13, 2017.… Continue Reading
In sad news for celebrities and Instagram influencers across Australia, the introduction of the so-called ‘fame tax’ as part of a raft of integrity measures announced in the 2018/19 budget means that they could end up paying higher taxes on the income and non-cash benefits earned through the commercial exploitation of their image rights.
In this article, we explore the impact of the changes on individuals who currently use a separate entity to cash in on their image rights.… Continue Reading
We have previously written on the FTC’s actions relating to social media influencer endorsements as well as the impact of animal endorsers, so we thought our readers would be interested in an Australian point of view on social media influencers, from our sister blog, the Brand Protection Blog.… Continue Reading
In a previous post, we addressed efforts by the Department of Homeland Security to collect certain information relating to immigrants’ use of social media for record-keeping and tracking purposes. Subsequently, on March 30, 2018, the State Department released a notice of a proposed rule that would require the collection of social media information in connection with an application for a Nonimmigrant Visa through what is called a DS-160. … Continue Reading
After being in force for merely ten weeks, the German law requiring social media companies to quickly remove hate speech from their sites (Network Enforcement Act – NetzDG) may soon be revised following criticism that too much online content is being blocked.… Continue Reading
We have previously written about the United States District Court for the Northern District of California’s (the “District Court”) dismissal of the plaintiffs’ complaint in Fields v. Twitter, Inc. We are back to provide an update after the case made its way to the United States Court of Appeals for the Ninth Circuit (the “Appellate Court”). The Appellate Court filed an Opinion on January 31, 2018, in which it affirmed the District Court’s dismissal of the plaintiffs’ claims.… Continue Reading