Social Media and Influencer Marketing Liability


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Overview

Companies increasingly rely on social media platforms, such as Twitter, Instagram, and Facebook, for public relations and information dissemination. 
 
In addition, corporate marketing campaigns now commonly include collaborations with social media “influencers,” individuals with large social media followings, who create and publish posts promoting or advertising a company’s products or services.  The use of social media and influencer marketing by corporations exposes companies to a new set of risks, including liability for copyright infringement, securities laws violations, and the rules of disclosure promulgated by the Federal Trade Commission. 

Corporations facing liability as a result of social media posts, including those published by collaborating influencers, may reduce their exposure for such risks through their various corporate insurance policies, including CGL, D&O, and other professional liability policies, and claims alleging liability based on social media or influencer marketing may be covered under a company’s existing corporate policies.