Modern marketing budgets are spending more and more on social media and in particular the use of ‘social media influencers’ through social media platforms such as Instagram, Facebook and TikTok to endorse, promote and sell goods and services.
At times the laws surrounding the engagement of social media influencers have failed to keep up with the practice, meaning that in the past it was largely unregulated, but there are now many laws, regulations and guidelines that need to be considered by any business that is considering engaging a social media influencer. Here is a quick snapshot of some of the most relevant ones:
- The Australian Consumer Law;
- The NSW Fair Trading Act;
- The Australian Association of National Advertisers (AANA) Code of Ethics; and
- The Australian Influencer Marketing Council’s (AIMCO) Influencer Marketing Code of Practice
Enforcement of these laws and regulations is also set to be on the rise. The ACCC recently stated that one of their priorities for the 2022/2023 financial year is “social media influencers who don’t disclose they are paid to promote the products they are pitching.”
Given the broadening legal framework and increased enforcement of such laws and regulations it is now more important than ever that businesses looking to engage with social media influencers seek legal advice before doing so. In this regard our top three (3) tips are:
- Familiarise yourself with the applicable legal obligations that arise in this area and if not certain engage a lawyer for specific, tailored advice;
- Put in place a formal agreement with the social media influencers which covers you and sets out the expectations as to what is required under the engagement; and
- Once an agreement is entered into monitor the social media influencer’s activities to ensure that they are complying with the agreement.
If you require assistance in this area please get in touch. Our firm has expertise and experience in all of these areas including the preparation of a ‘Social Media Influencer Engagement Agreement’ for a flat fee.
