We have previously written about the lawsuits that can result from unauthorized uses of photographs, but on November 2, 2020, a federal trial court in New York issued a ruling regarding use of a photo from a social media site that was “fair use” under the copyright laws. (Boesen, v. United Sports Publications, Ltd., 20-CV-1552 (ARR) (SIL) (E.D.N.Y. Nov. 2, 2020).

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).)

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 disclose their compensation. (Federal Trade Commission v. Teami, LLC, No 8_20-cv-00518 (M.D. Fla. March 5 & March 17, 2020))

Can a state law prevent a social media site from publicly posting accurate age information about individuals in the entertainment industry—even if that information is posted by users? The California legislature and Governor believed it was permissible, and the legislation went onto effect on September 24, 2016 (Cal. AB 1687, adding Cal. Civ. § 1798.83.5).  Five months later, a federal judge temporarily enjoined the government from enforcing that law, in IMDb.com Inc. v. Becerra, No. 16-cv-06535-VC (N.D. Cal. Feb. 22, 2017).

The U.S. Food and Drug Administration (“FDA”) regulates the use of social media to disseminate information about prescription drugs and medical devices. Our blog previously covered the social media guidance released by the FDA in 2014, and a sampling of Warning and Untitled Letters that the FDA has issued to drug manufacturers advertising on Twitter, Facebook, and Tumblr.

Our firm sister blog, Health Law Pulse, covered last year’s controversy surrounding Kim Kardashian’s Instagram post that endorsed the morning sickness drug Diclegis® without including relevant risk information in the text of her post. After the manufacturer of Diclegis® received an FDA Warning Letter, Kim posted a corrective ad stating the risk information associated with that drug.

Native advertising—or advertising that appears to match the form and function of the platform upon which it appears—and social media endorsements provide considerable opportunities for companies to strengthen their brands and reach consumers in innovative ways. More and more, “influencers” like Instagram “models,” fashion and lifestyle bloggers, “pinners,” and “vloggers” are joining the ranks of A-list celebrities in receiving substantial sums, or freebies like helicopter rides and luxury cars, to endorse products in their social media posts. Companies stand to gain sizable increases in their brand value and sales by capitalizing on the fame of social media influencers.  But they must also be careful to follow the requirements when it comes to native advertising, product placement, and endorsements.

This blog recently discussed regular people who have become internet sensations through the use of social media. Chiara Ferragni, for example, started a fashion blog in 2009. She is now a multimillionaire with approximately 5,000,000 Instagram followers.  Tay Zonday posted