Failing to have an Influencer Agreement in place can expose both brands and influencers to significant legal risks under UK law. Without a formal contract, there is a higher likelihood of misunderstandings regarding the scope of work, payment terms, and content ownership, which can lead to disputes and potential legal action.
Moreover, without clear terms, there is a risk of non-compliance with the Advertising Standards Authority (ASA) guidelines, particularly concerning the disclosure of sponsored content. This can result in reputational damage and potential fines for both parties.
Additionally, the absence of an agreement means there are no confidentiality clauses to protect sensitive information shared during the collaboration, increasing the risk of data breaches or misuse of proprietary information.
Furthermore, without an agreement, there are no indemnity clauses to protect against potential legal claims, leaving both parties vulnerable to liability if something goes wrong.
In essence, not having an Influencer Agreement can jeopardise the professional relationship, diminish trust, and potentially harm the credibility and success of the collaboration.