Legal Issues to consider when becoming a Social Media Influencer in Australia:
- There are legal obligations on social media influencers when making posts to the public.
- ?Social media influencers must abide by the Australian Influencer Marketing Council Code of Practice and the Australian Association of National Advertisers Code of Ethics. Australian Consumer Law also applies.
- Such obligations include making it clear to the audience that you are being paid to advertise a product or service by marking a post clearly as an advertisement or a sponsored ad - you may have seen celebrities use the hashtag #ad for example.
- A breach of these obligations can result in proceedings being brought by the Australian Competition and Consumer Commission (ACCC) and parties that suffer loss or damage because of your post.?
Social Media Marketing Contracts and Agreements
- The aim of a successful social media influencer is to be engaged by third parties to advertise their brand, services and products.?
- Any agreement with a third party should be in writing and should be reviewed by a legal representative before signing.?
- This sounds simple – but an agreement should reflect what the third party has discussed with you about your engagement. For example, if you have been told you will be paid every month, does the agreement reflect this? When can the third party withhold payment and what can you do if you are not paid as promised? Any agreed terms should be clearly stated in the agreement signed by the parties.
Don’t forget – you are running a business!
- As a social media influencer, you are operating a business. Your posts are the services you are providing to third parties as consumers. It is therefore important to take time to consider how you will be operating your business.
- ?We often sit down with our clients before they are engaged by third parties to establish which structure will work best for them. It may be that you are only wanting to use your influencing skills as a part time hobby and are not looking to make a significant income from your work. Alternatively, your income from influencing may be your main source of income.
- ?These factors will assist us and your financial advisors to determine what entity should operate the business. This may also affect your future tax liabilities, so it is important to tackle this at the beginning of your ventures.?
If you need assistance with any of the items raised above or have any questions, please feel free to contact us.??
This article was written by Margaret Zoides who is an Associate Lawyer at?Lawcrest.
