Collaboration with influencers has become a trend in recent years. an integral part of the marketing strategies of many brands. Social networks offer a space for authentically addressing the target group and influencers often have a high level of trust from their followers. The influence of these creators on consumer decisions is undeniable - however, it is all the more necessary to approach cooperation with them with legal responsibility.
The legal framework for influencer marketing in the Czech Republic is mainly composed of Act No. 40/1995 Coll., on the regulation of advertising, below Act No. 634/1992 Coll., on Consumer Protection and in the case of processing personal data General Data Protection Regulation (GDPR).
On the one hand, it stands out client – brand and on the other hand it is an influencerHow to regulate their cooperation? What is good to not only say in advance, but also to include in the contract? You can find all this in our article.
Hidden advertising: The most common violation of the law
One of the most serious legal problems in the field of influencer marketing is hidden advertising. According to Section 1(4) of the Advertising Regulation Act, advertising that is not clearly marked as advertising and could be considered editorial content or personal opinion is prohibited. Section 4 of the Consumer Protection Act prohibits deceptive commercial practices that may mislead consumers, in particular with regard to the commercial purpose of the communication.
Czech Trade Inspection (hereinafter referred to as "theCzech Trade Inspection Authority") states that a clear statement such as " is considered an adequate designationadvertising","sponsored content"Or"paid partnership", placed at the beginning of the contribution and in the same language as the content itself. According to the CTIA, a designation such as "collaboration with..." without further clarification is not sufficient.
Hidden advertising is a threat penance, up to several million CZK, therefore, in our opinion, it is important to be careful about the correct designation of advertising.
Contractual arrangements for cooperation with influencers
Although collaboration with influencers often takes place on the basis of verbal agreements or exchanges of messages, such a procedure poses significant legal risks for the client. In addition to legal uncertainty, there is also a risk of reputational damage if the influencer violates the rules of cooperation or publishes inappropriate content.
The written contract should include:
- campaign scope,
- approval process,
- advertising labeling rules,
- content licensing terms,
- conditions of the reward and above all
- liability in the event of breach of contract or legal regulations.
It is also advisable to arrange contractual penalty for a specific violation, such as illegal advertising concealment.
Content limits and ethical responsibility
The brand is responsible not only for whether the contribution acts as an advertisement, but also for its content. In accordance with Section 5 of the Consumer Protection Act the content must not be misleading, i.e. they must not claim properties about the product that it does not have or promise effects that are not documented, e.g. promote a product with an alleged "therapeutic effect" without it being an approved medicinal product.
Special attention should also be paid to cases where an influencer publishes inappropriate or socially unacceptable content. The contract should therefore include a so-called “morality clause” – a provision allowing the client to terminate the collaboration if the influencer damages the brand's reputation.
Privacy and competition
Influencers often run contests where they collect personal data from followers – names, emails, addresses. If such a contest is run on behalf of a brand, it is necessary to clarify who is the data controller and whether the data collection is legal.
Office for Personal Data Protection (hereinafter referred to as "the Office")Office of the President") repeatedly points out in its recommendations that even an influencer is obliged to comply with the GDPR if he processes personal data for commercial purposes. Processing data for marketing purposes without a legal title (for example, without informing competitors about the purpose of the processing) is a violation of Articles 5 and 6 of the GDPR.
záver
Cooperation with influencers is undoubtedly an effective tool of modern marketing, but it carries a number of legal risks that companies should not underestimate. Transparency, contractual certainty and compliance with applicable legislation are essential prerequisites for a successful campaign. Clients should manage cooperation with influencers in the same way as any other form of advertising - with an emphasis on legal compliance, consumer protection and maintaining the brand's reputation.
Source: epravo.cz
Do you need advice on how to properly approach cooperation with influencers from a legal perspective? We are here for you. Our team at Vych & Partners, law firm, is ready to create tailor-made contracts for you that will provide you with legal and marketing certainty.
JUDr. Ing. Jan Vych, attorney and partner
Mgr. Lucie Špičková, Attorney
