Thursday, November 1, 2018

Snapchat’s PR firm sues influencer for failing to deliver

PR firms are right to worry about their influencer relationships.

Companies pay big money for endorsements from celebrities and influential names with large social media followings. However, the star doesn’t always come through—and for Snapchat’s PR firm, that means going to court.

Snapchat, through the firm PR Consulting, had hired actor Luka Sabbat to promote its Spectacles—glasses designed to work with Snap’s social media platform. The firm is now suing the actor.

Esquire wrote:

Luka Sabbat is a 20-year-old influencer. He is famous for, among other things, hanging out at parties and fashion shows, being photographed while hanging out at parties and fashion shows, and briefly dating a Kardashian (Kourtney). It's that last bit that seems to have gotten him noticed by PR Consulting, which signed an influencer agreement with Sabbat on September 15, the day after he first got photographed with Kourtney, Variety reports. (A note: We at Esquire have, in fact, worked with PR Consulting on style stories throughout the years.)

The agreement was simple: Sabbat would post three Instagram stories and one proper in-feed post while wearing Snap Spectacles for his 1.4 million followers to see. Presumably, they would be, in some way or other, influenced. For this, Sabbat would take home the tidy sum of $60,000, with $45,000 paid up front. Reader: He did not post all the 'grams.

In fact, according to the lawsuit filed in New York Supreme Court on Tuesday, he only posted one story and the in-feed post, leaving two 'grams un-'grammed. He also didn't get photographed wearing Snap Spectacles at fashion week, which was another part of the agreement. Now, PR Consulting is seeking the return of the initial $45,000 payment, plus damages.

Working with influencers can be a tricky business.

[RELATED: Join us at Disney World to soak up some sun and a wealth of social media secrets.]

Gizmodo wrote:

Influencer is a vague term that basically translates to anyone with a social media presence who is willing to cash in on it, such as by accepting money to endorse products or simply be seen using them. For marketers, influencers are great, because celebrities can pitch products directly to their fans, and it’s often more cost-effective than a traditional advertising campaign.

For those who are not marketers or influencers, the line is a little murkier: No one is really under the illusion that, say, those hundreds of millions of dollars were not on LeBron James’ mind when he signed his Nike contract. But influencer marketing on social media is often associated with ethically questionable behavior in violation of Federal Trade Commission rules, such as failure to disclose what influencers have been paid to promote. Then there’s the fact that sometimes, self-described influencers are only vaguely influential.

Snapchat might not want to be connected to the lawsuit, though.

TechCrunch reported:

TechCrunch has attained a copy of the lawsuit filing, embedded below, that states “Sabbat has been unjustly enriched and PRC is entitled to damages.” Snap confirms to us that it hired PRC to run the campaign, and that it also contracted a campaign with fashion blog Man Repeller founder Leandra Medine Cohen. And as a courtesy, I Photoshopped some Spectacles onto Sabbat above.

But interestingly, Snap says it was not involved in the decision to sue Sabbat. The debacle brings unwanted attention to the pay-for-promotion deal that brands typically tried to avoid when commissioning influencer marketing. The whole thing is supposed to feel subtle and natural. Instead, PRC’s suit probably cost Snapchat more than $90,000 in reputation.

The case will also likely change how many influencer deals are structured, with payment being delivered after services instead of in large sums upfront.

TechCrunch continued:

The case could solidify the need for influencer marketing contracts to come with prorated payment terms where stars are paid fractions of the total purse after each post rather than getting any upfront, as The Fashion Law writes. PRC’s choice to chase Sabbat even despite the problematic publicity for its client Snap might convince other influencers to abide more closely to the details of their contracts. If social media creators want to keep turning their passion into their profession, they’re going to have to prove they’re accountable. Otherwise brands will slide back to traditional ads.

The fracas might not be such an outlier, as some report that other such disputes have been going on behind the scenes with less fanfare.

Engadget wrote:

Even though this is one of the first lawsuits filed against an influencer for breach of contract on an Instagram campaign, as The Fashion Law reports, apparently there are many more like these happening behind the scenes. This shouldn't come as a surprise, though, considering how often influencers are caught for questionable behavior on social media.

Remember that time Kendall Jenner was supposed to attend the doomed Fyre Festival but didn't? (Although, in fairness, that could've been because of how terribly organized the event was.) Or what about when Kim Kardashian isn't being transparent about whether her posts are ads? Simply put, the influencer culture has zero chill.

On Twitter, the lawsuit was not a positive for Snapchat, with users commenting on the lengths to which people would go to avoid using the product.

Some hoped the PR firm would win and that influencer marketing would become more accountable:

What do you think of the lawsuit, PR Daily readers?

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