Understanding the Legalities of Influencer Marketing in Michigan

Influencer marketing has transformed the advertising landscape, allowing businesses to connect with consumers through trusted voices on social media. From Instagram and TikTok to YouTube and beyond, influencers have become powerful brand advocates. However, as this form of marketing grows, so does regulatory scrutiny. Businesses in Michigan must navigate both federal and state laws to ensure compliance and avoid legal risks.

At True North Legal Group, we help small businesses understand the legal complexities of digital marketing. This guide explores the key legal considerations for influencer marketing in Michigan, including federal regulations, state laws, best practices, and strategies for legally compliant campaigns.

The Rise of Influencer Marketing

Businesses increasingly rely on influencers to promote products and services. Unlike traditional advertising, influencer marketing leverages personal connections and credibility to engage consumers. While this strategy is highly effective, it also comes with legal responsibilities. Regulatory bodies like the Federal Trade Commission (FTC) and Michigan state agencies enforce guidelines that businesses and influencers must follow.

Federal Trade Commission (FTC) Guidelines

The FTC regulates influencer marketing to protect consumers from deceptive advertising. Both brands and influencers must comply with its guidelines, which focus on transparency and truthfulness in endorsements.

Key FTC Requirements

• Influencers must clearly disclose any financial or material relationship with a brand, including free products or services.
• Disclosures must be easy to understand and placed where consumers will notice them, such as at the beginning of a post or video rather than buried in hashtags.
• Influencers can only promote products they have genuinely used and must provide honest opinions about their experiences.
• Businesses are equally responsible for ensuring influencer compliance and can face legal consequences for misleading marketing.

Michigan-Specific Considerations

In addition to FTC rules, Michigan businesses must comply with state consumer protection and advertising laws, which prohibit deceptive marketing practices.

Michigan Consumer Protection Act (MCPA)

The Michigan Consumer Protection Act (MCPA) broadly prohibits deceptive business practices, including false or misleading advertising. While the law does not specifically mention influencer marketing, it can apply to campaigns that mislead Michigan consumers through hidden sponsorships or false claims.

Michigan Advertising Laws

Michigan’s advertising laws require all marketing materials to be truthful and verifiable. Businesses that work with influencers must ensure that all product claims are accurate and can be substantiated. False advertising, whether intentional or accidental, can result in legal action under state law.

Best Practices for Influencer Marketing in Michigan

To ensure legal compliance, Michigan businesses should take the following steps when working with influencers:

1. Develop Clear Influencer Agreements – Businesses should create written contracts outlining expectations, disclosure requirements, content guidelines, and compliance obligations. Agreements should also specify compensation details and intellectual property rights.
2. Educate Influencers on Disclosure Requirements – Influencers should receive clear guidance on FTC and Michigan disclosure laws, including the use of terms like "#ad" or "Paid partnership with [Brand Name]" at the beginning of posts.
3. Monitor Influencer Content – Companies should regularly review influencer posts before they go live and conduct periodic audits to ensure ongoing compliance with legal standards.
4. Maintain Authenticity – Encouraging influencers to use their own voice and share genuine experiences strengthens consumer trust and helps avoid legal issues related to deceptive advertising.
5. Document Everything – Keeping records of influencer agreements, communications, content approvals, and payments can serve as evidence of compliance if legal challenges arise.
6. Stay Informed on Regulatory Changes – Influencer marketing laws continue to evolve, so businesses should stay up to date on changes to both state and federal regulations.

Navigating Platform-Specific Guidelines

In addition to government regulations, businesses must comply with social media platform rules for influencer marketing.

Meta platforms, including Instagram and Facebook, require influencers to use branded content tools that automatically label posts as paid partnerships. TikTok mandates the use of a branded content toggle for sponsored posts, while YouTube requires creators to disclose paid promotions within videos.

Understanding and following these platform-specific requirements is essential to ensuring compliance and avoiding penalties.

The Importance of Transparency in Influencer Marketing

Transparency is not just a legal requirement; it is also critical for maintaining consumer trust. Michigan businesses that prioritize openness in their influencer marketing efforts can build stronger relationships with their audience, enhance their brand reputation, and reduce the risk of legal disputes.

Potential Legal Consequences of Non-Compliance

Failing to comply with influencer marketing regulations can lead to serious consequences. Businesses that violate FTC guidelines or Michigan advertising laws may face fines, enforcement actions, and lawsuits from consumers or competitors. Additionally, noncompliant campaigns can damage a company’s reputation and erode public trust.

The Future of Influencer Marketing Regulations

As influencer marketing continues to grow, regulatory oversight is expected to increase. Businesses should prepare for potential changes, such as stricter guidelines for emerging social media platforms, increased scrutiny of micro-influencers, and enhanced enforcement of data privacy laws related to digital marketing.

Leveraging Influencer Marketing for Michigan Small Businesses

For small businesses, influencer marketing offers an opportunity to compete with larger brands and connect with local audiences. Working with Michigan-based influencers who have strong ties to their communities can help businesses build authentic customer relationships and strengthen their local presence.

Partnering with True North Legal Group for Compliance

Influencer marketing is a powerful tool, but businesses must approach it with an understanding of legal risks. At True North Legal Group, we provide legal guidance to help Michigan businesses navigate the complexities of digital marketing regulations.

Our legal membership model offers small businesses ongoing legal support for a predictable monthly fee. This ensures that businesses have access to experienced legal counsel when launching influencer campaigns, drafting contracts, and ensuring compliance with evolving laws.

Do not let legal uncertainties hinder your marketing efforts. Contact True North Legal Group today to learn how we can help you develop compliant, effective influencer marketing strategies that protect your business and build consumer trust.