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Investigating Influencer Lawsuits & The Industry’s Growing Pains
Influencer marketing is a growing industry, with predictions that it will become a $5-$10 billion dollar market over the next 5 years. As with any rapidly growing industry, influencer marketing has endured a few teething problems, such as FTC violations and contract breaches, as people try to navigate the legalities. Over the last 18 months, there has been a spate of influencer lawsuits, too.
The FTC has made their position on deceptive influencer actions known. Influencers, marketers, and brands are now privy to the FTC expectations, regulations, and contract guidelines. However, there are still influencers and brands who try to skirt the FTC requirements.
The stakes are high. With large sums of money on the line for brands, they–and the FTC–aren’t letting influencers off easy. Macro-influencers often receive more than $50,000 for a single post, so it is vital that influencers play by the rules. When brands pay for a service, they expect influencers to do the work for which they have been paid. It should not be any surprise to see brands actively pursuing cases of influencer contract violation.