Brand Influencer Contract Breach Demand Letters
When Influencers Miss Posts, Violate FTC Rules, or Breach Morals Clauses
| Contract Component | Typical Terms | Breach Scenarios |
|---|---|---|
| Deliverables | Number of posts, platforms (IG, TikTok, YouTube), formats (static, Reel, Story), posting dates/windows | Influencer misses deadlines, posts to wrong platform, fails to post entirely, posts wrong product |
| Content Approval | Brand pre-approval rights for captions, images, messaging; revision rounds; final sign-off before posting | Influencer posts without approval, ignores brand feedback, changes approved content after posting |
| Usage Rights | License to brand: territory, media, duration; whitelisting/paid amplification rights | Influencer blocks brand from running ads using content, claims ownership despite buyout clause |
| Exclusivity | No competing brands for X months; category exclusions (e.g., no other skincare brands) | Influencer promotes competitor simultaneously, accepting paid partnership with rival brand |
| FTC Disclosure | Required #ad, #sponsored tags; “Paid partnership” label; clear and conspicuous disclosure | Influencer buries disclosure in 20+ hashtags, omits disclosure entirely, uses ambiguous language |
| Morals Clause | Termination rights if influencer engages in conduct bringing brand into disrepute or controversy | Influencer posts offensive content, criminal allegations, public scandal damaging brand association |
2023 Update – Key Changes:
- Material connection must be disclosed: Any relationship (payment, free products, affiliate links, employment) between endorser and brand
- Clear and conspicuous: Disclosure must be “unavoidable” – can’t bury in hashtags or “more” button
- Platform-specific guidance: Instagram Stories require disclosure visible without clicking; TikTok videos need audio or on-screen disclosure; YouTube needs both video and description
- Brand responsibility: Brands must have processes to monitor and enforce disclosure requirements
- Fake reviews prohibited: Buying reviews, suppressing negative reviews, or posting fake reviews violates FTC Act
Non-Performance:
- Influencer ghosts after receiving product/payment
- Posts late (campaign timing missed – holiday, product launch, etc.)
- Posts to wrong platform or in wrong format
- Delivers substandard content (poor quality, doesn’t match brief)
FTC Compliance Failures:
- No disclosure whatsoever
- Buried disclosure (hashtag #37 of 40)
- Ambiguous disclosure (“Thanks [brand]!” without #ad)
- Disclosure only in collapsed “more” section
- Using platform’s “Paid Partnership” label inconsistently
Morals Clause Triggers:
- Criminal allegations (DUI, assault, fraud)
- Offensive social media posts (racist, homophobic, violent content)
- Public controversies damaging brand reputation
- Behavior inconsistent with brand values (e.g., health brand ambassador caught smoking)
Exclusivity Violations:
- Promoting direct competitor during exclusivity period
- Accepting payment from rival brand
- Wearing/using competitor products in posts during campaign
Before sending demand letter, compile:
- Contract documents: Master agreement, Statement of Work (SOW), any amendments
- Creative brief: Brand guidelines, messaging requirements, approval process
- Communications: Email/DM trail showing deliverables requested, approvals given (or withheld), deadline reminders
- Posted content (or lack thereof): Screenshots with timestamps, archived Stories, analytics showing post performance
- Payment records: Proof of payment/product sent, invoice copies
- Disclosure audit: Screenshots showing how disclosure appeared (or didn’t), compliance checklist
- Competitor activity: If exclusivity violated, screenshots of rival brand posts during restricted period
Objectives:
- Cure performance: Get influencer to post compliant content (if timing still works)
- Refund/fee reduction: Recoup fees for undelivered or non-compliant work
- Indemnity: Protect brand from FTC enforcement risk caused by disclosure failures
- Remove content: Take down posts that violate morals clause or misrepresent brand
- Prevent reuse: Ensure influencer doesn’t continue using brand assets or confidential info
Tone considerations:
- Professional, not punitive: Influencers have audiences – public disputes damage both sides
- Fact-based: Cite specific contract provisions breached, exact deliverables missed
- Regulatory emphasis: Frame FTC disclosure failures as risk to BOTH parties
- Commercial resolution: Offer options (cure + partial payment, full refund, negotiated settlement)
| Breach Type | Remedy Options |
|---|---|
| Missed posts | • Cure: Post within X days for reduced fee • Full refund + cancellation • Prorated payment for partial delivery |
| Late posts (timing critical) | • Full refund (campaign timing missed, no value) • Partial refund reflecting reduced value • Additional posts at no charge to compensate |
| FTC disclosure failure | • Edit/repost with compliant disclosure • Add disclosure to existing post • Indemnify brand from FTC enforcement • Fee reduction for non-compliant content |
| Morals clause violation | • Immediate termination + refund • Remove all brand-related posts • Public statement disavowing association • Damages for brand harm (harder to quantify) |
| Exclusivity breach | • Remove competitor content • Refund + liquidated damages (if in contract) • Extended exclusivity period to compensate |
Settle/Compromise if:
- Influencer responsive and willing to cure
- Breach is technical (e.g., disclosure could be fixed with edit)
- Campaign can still succeed with corrected posts
- Refund amount is small relative to litigation costs
- Public dispute would harm brand more than writing off loss
Escalate to litigation if:
- Influencer completely ghosted or refuses to respond
- Large contract value (tens of thousands) makes legal action economical
- Morals clause violation is severe and public
- Influencer continuing to harm brand (badmouthing, using confidential info)
- Setting precedent for other influencer relationships
Brand’s own non-performance:
- Brief delivered late (influencer couldn’t meet original deadline)
- Brand changed deliverables after agreement (scope creep)
- Product never sent or sent defective/wrong product
- Brand didn’t provide necessary assets (logos, product info, etc.)
- Approval process unreasonably delayed or conflicting feedback
Force majeure / impossibility:
- Illness, hospitalization preventing timely posting
- Platform outage or account suspension (if beyond influencer’s control)
- Unforeseen events making performance impracticable
Ambiguous contract terms:
- Deliverables not clearly specified (“approximately 3 posts” vs. “exactly 3 posts by X date”)
- Approval rights not defined (how many revision rounds? what’s timeline?)
- Usage rights unclear (does “social media” include paid ads?)
FTC disclosure disagreements:
- Brand’s guidance was itself non-compliant (told you NOT to use #ad to avoid looking “too commercial”)
- Disclosure was present but brand claims insufficient (evolving standards, platform-specific variations)
- Platform limitations (e.g., TikTok auto-deletes certain disclosures in some regions)
Morals clause overbreadth:
- Alleged “misconduct” is private behavior unrelated to brand
- Allegations not proven (brand terminating based on accusations, not conviction)
- Brand’s own conduct or other ambassadors’ behavior equally problematic
Immediate steps:
- Review contract: Re-read agreement, SOW, and all amendments – what exactly was promised?
- Gather evidence: Your communications, drafts sent for approval, proof of product receipt (or non-receipt), screenshots
- Check payment status: Were you fully paid? Partially paid? Is there a payment dispute already?
- Assess cure options: Can you fix the alleged breach? (Post now, edit disclosure, remove competitor content)
- Consult counsel: For high-value contracts or serious allegations, get legal review before responding
Response options:
| Option | When To Use |
|---|---|
| Agree to cure | Breach is minor/fixable; relationship salvageable; you want to preserve reputation |
| Partial settlement | Both sides have valid points; split the difference (partial refund, makeup posts, mutual release) |
| Assert defenses | Brand’s allegations are wrong; you have documentation showing compliance or brand’s own breach |
| Counterclaim | Brand owes YOU money (unpaid fees, scope creep, improper use of your content beyond license) |
| Refuse demand | Demand is baseless; you’re willing to defend in arbitration/litigation; small amount not worth conceding |
- Acknowledge valid points: If you DID miss a post, own it – credibility helps negotiate rest
- Propose middle ground: “I’ll repost with compliant disclosure and accept 20% fee reduction” vs fighting over 100% refund
- Document everything: Written responses only; create paper trail for potential dispute
- Protect future income: Don’t let brand publicly badmouth you or interfere with other partnerships
- Mutual release: Any settlement should include mutual non-disparagement and release of claims
Core Requirements:
- Material connection must be disclosed: Any relationship between endorser and brand affecting credibility of endorsement
- Types of material connections:
- Payment (cash, products, services, gift cards)
- Free products (even if unsolicited)
- Affiliate links / commission arrangements
- Employment or family relationship
- Business relationship or investment
- Clear and conspicuous disclosure: Disclosure must be “unavoidable” – can’t require consumer to click, scroll, or take action to see it
| Platform | Required Disclosure | Non-Compliant Examples |
|---|---|---|
| Instagram Feed | • #ad or #sponsored in first 3 hashtags OR • “Paid Partnership” label • Disclosure above “more” button |
• Hashtag #37 of 40 • “Thanks Brand!” without #ad • Only in collapsed caption section |
| Instagram Stories | • #ad visible on first frame OR • “Paid Partnership” sticker • No clicking required to see |
• Only on last frame of multi-frame Story • Tiny text in corner • Disappears too quickly to read |
| TikTok | • “Paid Partnership” label OR • On-screen text #ad throughout video OR • Audio disclosure (“This is a paid ad for…”) |
• Only in caption (not visible in For You feed) • Mentioned once quickly in 60-second video |
| YouTube | • Video disclosure (verbal + on-screen text) AND • Description disclosure (first 3 lines) • Use YouTube’s paid promotion checkbox |
• Only in description below fold • Mentioned once at end of 20-min video • Ambiguous language |
| Twitter/X | • #ad in tweet text (not just image) • Must be visible without clicking/expanding |
• Only in reply thread • In attached image text only |
FTC requires brands to:
- Educate influencers: Provide clear guidance on FTC disclosure requirements
- Include disclosure terms in contracts: Written requirements, not just verbal guidance
- Monitor compliance: Review influencer posts to ensure proper disclosure
- Enforce corrections: Require influencers to edit or remove non-compliant content
- Document compliance efforts: Maintain records showing brand took reasonable steps
Recent FTC cases:
- FTC v. Lord & Taylor (2016): $11,000 penalty for paid Instagram posts by influencers without disclosure
- FTC v. Teami (2020): $15 million (suspended to $1M) for fake reviews and inadequate influencer disclosures
- FTC v. Fashion Nova (2022): $4.2 million for suppressing negative reviews and failing to disclose paid influencer posts
Potential penalties:
- Civil penalties up to $50,120 per violation (2023 amount, adjusted annually for inflation)
- Corrective advertising / consumer notice requirements
- Consent decrees with ongoing monitoring
- Negative publicity from FTC press releases
- Written disclosure requirements: Include specific platform-by-platform guidance in contract
- Approval process: Review all content for compliance BEFORE posting
- Monitoring: Spot-check influencer posts; use social listening tools
- Correction protocol: Have process to quickly get non-compliant posts edited or removed
- Documentation: Keep records of compliance training, approvals, and correction requests
- Indemnification: Include indemnity clause for influencer’s knowing violations, but don’t rely on it to avoid FTC liability
I represent brands, agencies, and influencers in influencer marketing disputes. I handle contract enforcement, FTC compliance counseling, and both sending and defending demand letters for missed deliverables, disclosure failures, and morals clause issues.
- Draft and send demand letters for influencer contract breaches
- Enforce morals clauses, exclusivity provisions, and non-disparagement terms
- Pursue refunds and liquidated damages for non-performance
- Handle FTC compliance issues (correcting disclosure failures, responding to FTC inquiries)
- Negotiate settlements when influencer breaches contract
- Draft influencer agreements with enforceable terms and FTC-compliant disclosure requirements
- Pursue injunctive relief for ongoing violations (competitor promotion, unauthorized brand use)
- Defend against brand demands for refunds or breach claims
- Negotiate settlements when performance issues arise
- Assert defenses (brand’s own breach, scope creep, force majeure)
- Review contracts before signing (identify unfavorable terms, negotiate improvements)
- Advise on FTC compliance to avoid brand disputes
- Handle payment disputes (brands not paying for completed work)
- Brand: Recovered $45k from influencer who ghosted after payment, violated exclusivity with competitor
- Brand: Negotiated morals clause termination + content removal after influencer controversy
- Influencer: Defended against $30k refund demand; settled for $8k after proving brand’s scope creep
- Influencer: Resolved FTC disclosure dispute; brand accepted corrected posts without fee reduction
- Agency: Drafted template influencer agreements with FTC-compliant disclosure requirements for 50+ brand clients
- Demand letter (brand-side): Flat fee ($1,500-$3,000) or hourly
- Contract review (creator-side): Flat fee ($500-$1,500 depending on complexity)
- Settlement negotiation: Hourly or percentage of amount recovered/saved
- Litigation/Arbitration: Hourly or hybrid (flat fee + hourly/contingency)
- Contract drafting (brands): Flat fee ($2,000-$5,000 for template + customization)
Book a call to discuss your influencer marketing dispute. Whether you’re a brand seeking to enforce contract terms or a creator defending against demands, I’ll assess your situation and recommend strategy.
Email: owner@terms.law