Influencer marketing is expected to reach $16.4 billion in 2022. "Influencers" are individuals who create content and share it through their social media platforms to influence the opinion and/or purchasing decisions of their social media following. Brand marketers currently dedicate a significant portion of their clients' advertising budget to influencer-related marketing. For years, the legal framework governing the collaboration between influencers, advertisers and brands has been comparable to the Wild Wild West, presenting multiple legal challenges to navigate.

In 2017, the Federal Trade Commission (FTC) issued its "Guides Concerning the Use of Endorsements" to encourage clear and truthful influencer advertising. Prior to the FTC compliance policies, influencers were not required to disclose to consumers whether they actually liked a particular product, or simply received compensation to promote the product. However, the FTC Endorsement Standards only respond to one of the many challenges that influencer-related advertising presents for brands, advertisers, and the influencers themselves.

Further, social media use itself presents legal challenges for influencer advertising. For example, the use of third-party content without permission, although encouraged by the mechanics of social media platforms, is explicitly prohibited in influencer advertising. The unauthorized use of third-party intellectual property, including photos, videos, and other content that includes third-party trademarks, copyright protected material, and other proprietary rights, exposes influencers and brands to liability. Consequently, brands have been encouraged to narrowly draft influencer agreements and social media campaign terms to ensure protections against reckless influencer actions.