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:
Non-Performance:
FTC Compliance Failures:
Morals Clause Triggers:
Exclusivity Violations:
Before sending demand letter, compile:
Objectives:
Tone considerations:
| 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:
Escalate to litigation if:
Brand's own non-performance:
Force majeure / impossibility:
Ambiguous contract terms:
FTC disclosure disagreements:
Morals clause overbreadth:
Immediate steps:
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 |
Core Requirements:
| 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:
Recent FTC cases:
Potential penalties:
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.
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
Most influencer marketing disputes involve creators chasing brands for unpaid fees. But brands face their own contractual challenges when influencers fail to deliver posts, miss deadlines, violate exclusivity agreements, ignore FTC disclosure requirements, or trigger morals clauses through controversial conduct. When a paid influencer campaign goes wrong, brands need to enforce contract terms to recover fees already paid, recoup damages from failed campaigns, protect their reputation, and ensure FTC compliance. Understanding when and how to send demand letters for influencer contract breaches is essential for brands investing in creator marketing.
Under the FTC's updated Endorsement Guides (16 CFR Part 255), brands are responsible for monitoring and enforcing disclosure requirements—not just influencers. If an influencer fails to disclose a paid partnership properly, the brand faces potential FTC enforcement action, including warning letters, consent orders, and civil penalties. This makes influencer disclosure compliance a contract enforcement priority. Brands should require clear #ad or #sponsored tags in visible locations (not buried in hashtag strings), audio and visual disclosures in videos, and platform-specific tools like Instagram's "Paid partnership" label. When influencers fail to comply, brands must demand immediate correction or face regulatory risk.
Demand letters to influencers should be firm but professional—the creator economy is relationship-driven, and scorched-earth tactics can hurt future partnerships. Send a demand letter when: the influencer has missed contracted deliverables and informal follow-up has failed; the influencer posted without proper FTC disclosures and hasn't corrected after initial notice; exclusivity violations are discovered; or morals clause triggers require contract termination and fee recovery. The letter should cite specific contract provisions, document the breach with evidence (screenshots, timestamps, tracking data), demand specific remedies (refund, re-posting, disclosure correction), and set a clear deadline for compliance before escalation to litigation or public dispute.