What Legal Considerations should non-profits be aware of when working with Influencers?

In the world of non-profit organizations, partnerships with influencers can be incredibly valuable for driving awareness and fundraising efforts. Influencers can help amplify a message, raise awareness for a cause, and provide a new audience for the non-profit to reach. However, legal considerations should be taken into account when working with influencers to ensure compliance and mitigate any legal risks.

Disclosures

One of the biggest legal considerations when working with influencers is the requirement to disclose any sponsored content. The Federal Trade Commission (FTC) has guidelines that dictate how influencers should disclose sponsored content. Essentially, any content that an influencer posts that is sponsored by a non-profit must be clearly disclosed to their followers using hashtags such as #ad or #sponsored. It is important for non-profits to be aware of these guidelines and ensure that the influencers they work with are properly disclosing any sponsored content.

Trademark and Copyright Infringement

When non-profits work with influencers, they need to ensure that the influencer is not infringing on any copyrighted or trademarked material. For example, an influencer cannot use an image or logo that belongs to the non-profit without permission. Additionally, if the influencer creates new content for the non-profit, such as a video or photograph, the non-profit should ensure that they have the proper licensing and ownership of the content to avoid any legal issues.

Promotions

When non-profits work with influencers to promote their organization or fundraising efforts, they need to ensure that the promotion complies with all applicable laws and regulations. For example, if the non-profit is hosting a raffle or fundraising event, the promotion needs to comply with state and local laws governing such events. Additionally, any sweepstakes or contests that are part of the promotion need to comply with sweepstakes laws and regulations. The non-profit should consult with legal counsel to ensure that their promotions are compliant with all applicable laws and regulations.

Data Privacy

When working with influencers, non-profits need to ensure that any personal data collected by the influencer is done in a way that is compliant with privacy laws such as the General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA). If the influencer collects personal data from their followers during the course of the campaign, the non-profit needs to ensure that the influencer complies with applicable laws and has the necessary consents in place.

Insurance Coverage

Non-profits should also evaluate their insurance coverage before working with influencers. They should ensure that they have the necessary types and amounts of insurance coverage to protect themselves against any potential legal claims that may arise as a result of the influencer campaign. This may include general liability insurance, errors and omissions insurance, or media liability insurance. Consulting with an insurance broker or legal counsel can help non-profits evaluate their insurance needs.

Conclusion

Non-profits can benefit greatly from partnerships with influencers, but it is important to be aware of the legal considerations involved. By properly disclosing sponsored content, avoiding trademark and copyright infringement, ensuring compliance with applicable laws and regulations, protecting personal data, and evaluating insurance coverage, non-profits can mitigate legal risks and ensure a successful partnership with influencers.