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On August 5, 2022, a federal trial court in Ohio ruled that the location of a social media influencer meant that jurisdiction was proper for a tortious interference with contract lawsuit brought against the influencer and alleged interferers, even though one of the defendants had only been to Ohio once, five years ago.  EHPLabs Research, LLC, v. Smith, No. 5:22CV0653 (N.D. Ohio, Aug. 5, 2022) (2022 WL 3139604).  Although the matter is at the motion-to-dismiss stage, it provides some good takeaways for anyone entering into arrangements with social media influencers.

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))

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 them on the red carpet, in commercials, and on runways. As their numbers become more widespread and controversies settle over fake engagements and followers, virtual influencers have entered the market and are set to transform the influencer industry.

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 has utilized influencer marketing to disseminate information regarding the dangers of opioid usage among young people.

A federal trial court in California ruled in favor of a social media influencer’s copyright, trademark, interference with contract, and right of publicity class action lawsuit and denied the defendant’s motion to dismiss.…

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.