Managing Compliance and Social Media Risks in the Era of Creator-Driven Marketing

According to an article by Douglas Cherry of Shumaker, Loop & Kendrick, LLP, the rapid growth of influencer marketing has created new risks for companies that depend on creators to promote their products. What once appeared to be a simple brand-building channel now requires more oversight, especially regarding compliance and social media, as more businesses are being sued for issues like creators’ use of unlicensed music and other third-party content. 

Cherry notes a growing wave of litigation from major music publishers against brands whose creators incorporated unlicensed tracks into promotional posts. The problem is simple: creators often assume they hold the rights to repurpose music or photos found online, or they rely on licenses that apply only to personal, not commercial use. 

Because companies benefit from the resulting content and may exert varying degrees of control over it, rights holders are targeting the deeper pockets behind the posts, claiming secondary liability. Even when defenses exist, asserting a claim is easy, and the volume of demand letters and settlements shows how quickly this risk is maturing.

Companies should establish robust agreements that define ownership, permissions, and liabilities; maintain processes to monitor creator posts; and ensure internal teams understand how IP rules apply in social media environments. Working with reputable creators or agencies, reviewing insurance coverage, and providing clear Federal Trade Commission guidance can further reduce exposure. 

As the legal landscape continues to evolve, disciplined oversight and clear expectations remain the most effective tools for navigating today’s compliance and social media challenges.