Brand Damage: Liability for Influencer Marketing and Deceptive Practices, Avoiding Consumer Protection Violations

Influencers are increasingly a part of effective consumer digital marketing. Federal and state regulators allege consumer deceptive practices when companies fail to disclose any material connections between the brand and endorser. Consumer class actions seek millions in damages and injunctive relief. The results are reshaping marketing in an evolving legal landscape where hashtags, affiliate links, and micro-influencers bring potential risk.

The experts will examine the Federal Trade Commission's Endorsement Guides clarifying disclosure expectations in social media and how these regulators and private plaintiffs assess disclosures in litigation. Case developments in Negreanu v. Revolve, Dubreu v. Celsius, and Bengoechea v. Shein illustrate the legal theories, including price premium claims, statutory misrepresentation, and joint liability.

State consumer protection laws, the "Little FTC Acts," enable private suits where federal enforcement lacks. This session covers litigants' use of California's UCL and CLRA, New York's GBL, and other deceptive practices statutes to catalyze class claims. The experts will also explore emerging global risk under the EU Digital Services Act and UK ASA influencer rules.

Listen as our expert panel provides useful strategies to mitigate risk, including best practices in contract drafting, employee and influencer training, and marketing initiative audits. 

I. Introduction and background

II. FTC rules and enforcement trends

A. Overview of FTC endorsement guides (16 CFR Part 255)

B. FTC warning letters and enforcement examples (e.g., Celsius Holdings)

C. FTC enforcement vs. private action

III. State consumer protection laws and "Little FTC Acts"

A. Common statutes used in class actions: California UCL, CLRA, FAL, New York GBL §349, §350, others

IV. Case law and recent class actions

A. Negreanu v. Revolve Group

B. Dubreu v. Celsius Holdings

C. Bengoechea v. Shein

V. Legal theories and developments

A. Existing case theories

B. Potential liability extending to talent agencies and PR firms

C. Platform responsibility (YouTube, TikTok, Instagram)

D. Global developments: EU Digital Services Act, UK ASA guidance

VI. Best practices and risk mitigation

The panel will review these and other important issues:

• The FTC's Endorsement Guides and their application
• The "Little FTC Acts" and how consumer advocates are framing their legal claims
• Global disclosure mandates
• Key legal risks facing companies under federal and state consumer protection laws
• Recent decisions regarding failure to disclose influencer material connections and the underlying legal theories
• Best practices for contract drafting, marketing initiative monitoring, and policy creation to reduce risk