[Consulting] Providing legal consulting to A company engaged in influencer commerce.

Law firm Veat provided legal consultation to Company A, which conducts business planning such as advertising agencies through famous influencers on SNS and drop shipping. 

With the number of Instagram and YouTube users increasing exponentially, the appearance of existing e-commerce is also shifting from the traditional open market and social commerce to newly emerging influencer commerce centered on SNS. 

Accordingly, Company A also prepared a new promotion and wanted to verify that there were no legal problems and comprehensively review contracts concluded with other companies to supplement any deficiencies.

Veat provided Company A with ▲ advice on laws to be observed when conducting promotions ▲ review of contract terms with cosmetic sellers violating the contract ▲ advice on measures to deal with government regulations.

Influencer commerce, which emphasizes friendliness and communication unlike existing sales strategies, has the advantage of being able to target consumers more reliably and gives a sense of trust, but raises controversy in that it exists on a blurred line between a subscription relationship of sharing daily life and a business-consumer relationship. In fact, in November 2021, the Fair Trade Commission imposed a fine for the first time on influencer use-after-review advertisements that received product or advertising fee support but failed to disclose this fact. (Article reference)

Based on its previous experience in advising on the Advertising Law, Veat thoroughly reviewed market changes and the FTC's regulatory direction to provide the business owner with optimal consulting. Companies requiring legal advice related to e-commerce are welcome to contact Law firm Veat.

Thank you.
Law firm Veat