Influencer marketing in Australia has increased by 11% year-on-year yet roughly 80% of Australian influencers surveyed by the Australian Competition and Consumer Commission (ACCC) may be violating the law. Whether you are a small or large business, you want to make sure that your influencer marketing practices align with the legal system to keep up company goodwill and keep out of legal trouble. Below are some tips for brands to ensure they implement to ensure compliance with both influencers and the legal system.
1. Disclosure of your influencer marketing
Ensure that all your influencers clearly disclose the nature of their affiliation
with your brand. Influencers are required to reveal any sponsored content
and any benefits they have received in return for posting. This entails
disclosing any business relationships to followers and including disclaimers
in sponsored content. In Australia, there are fines and penalties for not
disclosing.
2. Create an Influencer Marketing Agreement/Contract
A legally binding contract is a beneficial tool for both brands and content
creators. Avoid sending out products and being ghosted by influencers by
generating a contract that clearly sets out the deliverables expected of the
Content Creator. This creates better communication between parties for the
vision of the campaign as well as ensures that both parties uphold their end
of the collaboration.
3. Industry Specific Compliance
The niche of your brand may alter the regulatory compliance measures that
need to take place to remain legally valid. For example, financial influencers
‘Finfluencers’ must ensure that they comply with the financial regulatory
compliance including but not limited to a financial services license,
authorised representative status or a clear warning that they are not involved
in promoting financial services. The Australian Influencer Marketing Council
(AiMCO) released a code of conduct that may be a useful guide to
understanding your niche.
4. Comply with Copyright of Content
Unless specified in a contract, the Intellectual Property (IP) of content made belongs to the Influencer. As a result, even if a customer has paid for the content, the influencer will still have legal ownership rights over it. Either negotiate with your influencers prior to the contract being formed or explicitly mention the promotional purposes of the content within your Influencer Marketing Contract to stay compliant with Copyright Laws.
Legal vigilance is a necessary part of success in the current digital space. Adhering to these legal guidelines not only protects your company from future lawsuits and fines, but it also increases credibility and confidence in the online market.