Specialising in Influencer Agency Contracts
Let’s explore the world of influencer agency contracts together!
Influencer Agency Lawyers
PAIL® Solicitors offer bespoke contracts for setting up influencer agencies, and specialist advice for disputes with brands and other agencies including employment matters and intellectual property and breach of contract cases.
What is an influencer agency?
An influencer agency like every type of employment agency is a business that signs and represents influencers to clients which can be brands or other agencies. In return for introducing their signed models to clients, the influencer agency takes a commission from the fee paid by the client to the influencer.
What laws govern an influencer agency?
The Agency Regulations govern how you set up and run an influencer agency.
Here are the most important provisions.
1. An influencer agency is required to provide all influencers with a written agreement.
2. Payment by an employment agency is prohibited.
3. Under the Agency Regulations influencer agencies may not make finding a booking for an influencer conditional on the provision of additional services such as hotel, flights and marketing. Further, the influencers must be given an opportunity to opt out of any additional services.
4. Some of the most common agreements in the influencer industry are Influencer Agreements; and Influencer Marketing Agreements.
4.1 If a term in an influencer agreement is prohibited or made unenforceable by the Agency Regulations, the contract shall continue to bind the parties if it is capable of continuing in existence without that term.
5. An influencer agency may not take detrimental action or include restrictive terms in a contract which have the effect of preventing the influencer from terminating the contract, or which unfairly constrain or restrain the client model from earning a living.
6. An influencer agency cannot threaten to withhold payment or deduct a proportion of payment from an influencer because they terminated their contract with the agency.
7. An influencer agency can seek recovery of loss as a result of an influencer terminating a contract and not carrying out the necessary work.
8. Both sides must give reasonable notice before terminating an agreement.
9. If an influencer agency receives money on behalf of an influencer it must be paid into a client account by the end of the 2nd business day after the day it is received. Payments to client models must be accompanied with a statement setting out (a) When and from whom, the monies were received; (b) the work for which the payment relates; and (c) any fees or deductions made by the model agency.
10. If an influencer agency is trading more as an employment business I.e. it is acting as of it employs the influencer then it may never request or directly or indirectly receive money on behalf of a client in any circumstances.
What happens if you breach these regulations?
If an influencer agency fails to comply the Agency Regulations it can be sued for damages and in extreme cases for fraud.
Useful Links
ten tips for social media influencer agreements
Modelling contracts
Influencer Agency Lawyer
Whatever it is, the way you draft the contract or deal with the situation can make all the difference.