Influencer marketing continues to surge, with global growth projected to reach approximately $32.5 billion this year, according to Statista data.
With that growth, however, comes an increase in litigation risks facing content creators and the brands that hire them. Recent cases with billions in damages on the line have shown that the legal landscape for influencer partnerships is becoming increasingly complex, costly, and public.
The most common exposures in influencer advertising fall into three buckets: copyright infringement, defamation, and disclosure violations.
Copyright infringement remains the leading source of claims against influencers and their brand partners. The risk is particularly high in short-form video, such as those on TikTok or Instagram Reels, where trending music and visual backdrops are central to content creation.
For instance, in March, Warner Music Group sued Designer Shoe Warehouse (DSW) for allegedly using over 200 copyrighted tracks in influencer-created TikTok and Instagram ads without licensing. Warner is seeking statutory damages of up to $150,000 per song, potentially exposing DSW to claims exceeding $30 million.
“One of the largest trends we’re seeing involves music use,” said Chris Cooper (pictured), senior vice president, professional liability – US head of media and professions at QBE North America.
“Social platforms have blanket licenses for personal use, like TikTok dances, but the commercial-use libraries are much smaller. If an influencer uses a trending song not cleared for brand content, that’s copyright infringement.”
Best practices for preventing copyright infringement include using only songs from the commercial-use library on platforms and ensuring no copyrighted artwork appears in the background of influencer videos.
“You don’t want an Andy Warhol print hanging behind you in a brand campaign,” Cooper said. “It might not be the most aesthetic choice, but it avoids big legal problems.”
Another recurring issue is defamation, particularly when influencers veer away from approved talking points. “If [influencers] start talking about competitor products and make false statements, that can lead to trade libel claims,” Cooper said.
This risk has already surfaced in high-profile disputes. Earlier this year, influencer Avery Cyrus was sued by her former manager, who alleges that defamatory remarks made in a TikTok livestream caused him reputational and financial harm.
Although not directly tied to a brand campaign, the case highlights how quickly offhand comments can escalate into litigation. Cooper encouraged insureds to provide training and establish guardrails for influencer partners, and to avoid incentivizing content that disparages competitors.
Perhaps the most visible regulatory risk for influencers is failure to disclose sponsorships. Federal Trade Commission (FTC) rules require influencers to clearly state when they have received compensation or free products, but enforcement has been uneven until recently.
“A big misconception is that disclosure is only required if money changes hands,” Cooper said. “In reality, it also applies when products are provided for free or in trade. Any form of perceived compensation must be disclosed.”
That standard is increasingly being tested in court. In California, class actions have been filed against Celsius energy drinks, Shein, and Revolve, accusing brands and influencers of hiding material connections. Plaintiffs have argued that hashtags buried at the end of captions or hard-to-read disclosures violate FTC rules and are seeking hundreds of millions in damages.
According to Cooper, brands often discover too late that their influencers lack the coverage or financial means to defend or indemnify them. QBE developed an influencer marketing policy after repeated instances where media defence firms were brought in at the last minute to handle claims.
“Plaintiffs’ attorneys will sue both the influencer and the brand,” he said. “If the influencer doesn’t have their own policy, the brand can end up footing the bill. [The product] helps brands with only general liability coverage, or limited media liability in cyber policies, mitigate that balance sheet risk.”
Beyond legal compliance, Cooper emphasized that brands must carefully select influencer partners.
“Companies should consider their own advertising and brand philosophy,” he said. “For example, a family-values brand should work with influencers producing family-friendly content, appealing to parents or grandparents. If you choose someone just because they’re trending but their content clashes with your brand values, you’re likely setting yourself up for problems.”
