Use of Influencers by Franchisors and Retailers
The use of influencers in marketing campaigns has significantly increased in recent years. Influencers can have a substantial impact on the visibility and image of a brand, especially on social media. However, it is important to consider certain legal aspects. We provide some best practices for franchisors and retailers who want to use influencers.
Legal Frameworks and Obligations
According to Belgian law, influencers who pursue an economic goal on a sustainable basis must be registered as a business with the Crossroads Bank for Enterprises (CBE). This means that if an influencer is regularly paid (to be interpreted in the broadest sense) for promotions, they must be considered a business. Payment includes any consideration the influencer would receive from the involved retailer (free products, presence at events, etc., are also considered as “payment”).
Contractual Obligations
It is therefore advisable to clarify the agreements between the franchisor/retailer and the influencer before the collaboration begins. This agreement should clearly define all forms of direct and indirect payments and outline the nature of the collaboration, to avoid, among other things, the influencer being considered an employee.
Obligations of the Influencer and Retailers
Influencers, as well as the retailers who use them, must comply with the Belgian Code of Economic Law, which means they must respect fair commercial practices and clearly identify all commercial communication as advertising. This includes mentioning “in collaboration with [brand]” and clearly marking messages as “advertising”. Contractually, retailers can of course place the responsibility and liability for non-compliance with legal rules on the influencer. However, retailers should themselves ensure compliance with the rules of the Code of Economic Law and follow this up with the influencer, as the negative impact of illegal influencer campaigns will obviously be detrimental to the retailer’s image.
Practical Tips for Franchisors and Retailers
- Select the right influencer: Choose influencers who match the image and values of your brand.
- Clear agreements: Ensure clear agreements about the content and frequency of the posts and also consider who acquires the copyrights and any other intellectual property rights on the involved posts, to avoid becoming too dependent on the influencer in case of reuse or modification (also publication on other media).
- Transparency: Ensure that all promotional messages are clearly marked as such to avoid misleading the recipients.
- Monitor compliance: Monitor the activities and posts of the influencer to ensure they comply with the agreements and legislation.
Conclusion
The use of influencers can be an effective way to promote your brand, but it is important to follow the correct legal steps and make clear agreements. By ensuring transparency and compliance with the legislation, franchisors and retailers can benefit from the advantages of influencer marketing without legal risks.
