Authors: Allison Fitzpatrick, Paavana Kumar, Jordan Thompson and Amy Marcus. 

Class actions targeting prominent brands using influencers to advertise their products on social media are on the rise, accusing brands and their influencers of failing to properly disclose paid endorsements. 

A series of recent cases targeting brands and their influencers rely on a similar set of facts – namely that consumers paid a premium for goods recommended by influencers that they might not otherwise have purchased, believing these recommendations were based upon the genuine opinions of these influencers rather than part of a paid ad. With damages sought in the tens to hundreds of millions of dollars, these class actions are proving to be a major concern for brands that engage in influencer marketing.