THE LEGAL IMPLICATIONS OF INFLUENCER MARKETING

Influencer marketing has disrupted the advertising sector by capitalizing on social media personalities and their large following and influence to promote products or services. The speed of this evolution has far outpaced the pace at which the corresponding legal frameworks are being developed, thereby raising major compliance and consumer protection concerns. The current study will, therefore, contribute towards the examination of the legal issues surrounding influencer marketing in areas such as disclosure requirements, challenges in enforcement that regulators face, and consequences in case of non-compliance. It will, therefore, seek an understanding of the current legal environment through analysis of existing regulations, legal cases, and the view of industry experts.

This paper outlines the legal implications of influencer marketing through an analysis of current laws, regulatory guidelines, and notable legal cases. Based on a qualitative approach comprising a literature review and expert interviews, this study found yawning gaps in the existing legal regime and the challenges enforcement authorities face. Of particular note from the analysis is that the majority of influencers, along with brands, ignore or misunderstand the disclosure requirements—therefore engaging in deceptive advertising.