Businesses increasingly collaborate with social media influencers to promote their brand and connect with their online audience, but such relationships can put a company’s reputation on the line and create liability risks.
Liabilities can arise in areas such as defamation and libel, securities laws violations, copyright and trademark infringement, and around information protection and disclosure rules, experts say.
Influencer marketing can be an effective way for companies to expand their reach but can also lead to increased risks because a business is “effectively giving up some control in its advertising,” said Luma Al-Shibib, shareholder in the New York office of Anderson Kill P.C.
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