• Home
  • About Us
  • Meet The Team
  • Practice Areas
    • Defamation Law
    • Internet Law
    • Corporate Law
    • Ecommerce Law
    • Advertising Law
    • Social Media Law
  • Internet Law Blog
  • Contact Us

Call Toll Free 1-866-570-8585

Find An Office Near You
Speak With an Internet Lawyer Now
RM Warner Law | Online, Marketing, Internet Business Law FirmRM Warner Law | Online, Marketing, Internet Business Law Firm
RM Warner Law | Online, Marketing, Internet Business Law FirmRM Warner Law | Online, Marketing, Internet Business Law Firm
  • Home
  • About Us
  • Meet The Team
  • Practice Areas
    • Defamation Law
    • Internet Law
    • Corporate Law
    • Ecommerce Law
    • Advertising Law
    • Social Media Law
  • Internet Law Blog
  • Contact Us

The Legal Guide to the Beauty Industry for E-Commerce Companies & Beauty Influencers

Home » E-Commerce Law » The Legal Guide to the Beauty Industry for E-Commerce Companies & Beauty Influencers
Beauty Influencers & E-Commerce Companies: The Legal Guide

The Legal Guide to the Beauty Industry for E-Commerce Companies & Beauty Influencers

July 13, 2021 Posted by Raees Mohamed Advertising Law, Business Law, E-Commerce Law, Internet Law, Social Media Law No Comments

The beauty and personal care market is expected to grow from $511 billion in 2021 to $784.6 billion in 2025, partially thanks to the trending growth of the e-commerce industry in general and the power of influencer marketing. With influencers raking in so much money in beauty, it is important to consider the legal protections – and cautions – of launching an e-commerce beauty brand.  

Beauty Influencers & E-Commerce Companies: The Legal Guide | RM Warner Law

What are the Most Common Legal Issues in the E-Commerce Beauty, Cosmetics, and Personal Care Industry?  

  • Establishing a proper business entity to protect you from personal liability 
  • Creating proper business agreements to protect your business interests with partners and affiliates 
  • Drafting proper online terms of use and privacy policies for your websites and ecommerce stores 
  • Drafting proper licensing agreements 
  • Remove fake reviews and defamatory statements made about your business online 
  • Resolve competitor unfair competition issues   
  • Counterfeit products and avoiding attacks on your re-sale business 
  • Issues with FTC Compliance, including avoiding deceptive marketing practices outlined in their “.COM disclosures” guidelines (I.e., honest testimonials and product reviews, etc.)  
  • Protecting your intellectual property rights online, including the removal of unlawful copyright infringement through DMCA takedowns
  • Trademarking all of your important logos, slogans, and words, to differentiate your brand  
  • Protecting your personal and business brand’s reputation online 
  • Making medical and health claims in marketing materials for that don’t comply with FDA and DSHEA rules and guidelines  
  • Payment processing issues, chargebacks, and holdbacks with credit card processors and Amazon 
  • Addressing account suspensions on Amazon, the largest ecommerce platform 
  • Reviewing your product advertising practices (influencer marketing, social media advertising, testimonials, funnels, and videos for compliance with all applicable laws.)  
  • Learn More Here  

6 Business Entities For Your Start Up | RM Warner LawProtecting Your Beauty Cosmetics and Personal Care E-Commerce Business  

Establishing a proper business entity: Before you launch your brand, it’s important to set your company up with the property protections including establishing a business entity that is the right fit for your needs. Is an LLC the best, or is a corporation better for you? Never do business as a sole proprietor! It’s best to discuss your options with an experienced e-commerce attorney. The same goes for business agreements with partners and affiliates – including partnerships with beauty influencers. 

Online Terms and Privacy Policies:Anyone who you collect data from needs to agree to your online terms of service and data collection practices. This must be in compliance with state and federal laws, including the FTC, that requires your business to disclose how you collect user data and how you use user data. If you are collecting data from European users, you need to make sure you are compliance with the latest GDPR requirements.  

 

Fake Reviews and Defamatory Statements

If someone or multiple users post fake or defamatory reviews about your beauty brand online, it can tremendously affect your sales, reputation, and search ranking. It’s critical to address these situations as soon as possible so you can resolve the issue before it gets any worse. To learn how to spot a fake review, click here. To get in contact with an experienced defamation attorney to discuss your options, click here.  

Marketing for Your E-Commerce Beauty Brand  

FTC Reminder

FTC Compliance 

Advertising for your e-commerce beauty cosmetics and personal care business can be extremely sensitive. And I don’t mean in the emotional way, I mean in terms of compliance with federal law. There are multiple rules and regulations marketers and brands must follow unless they want to receive a fine or a full FTC investigation into their company. Trust me, you’d rather be compliant. It is especially important to make sure that all your claims about your products can be substantiated with scientific evidence. Statements like, “this under eye cream can remove dark circles” needs to be backed up by actual testing that proves it really works. If you don’t have any proof, the FTC can come after you. You cannot say whatever you want just to make a sale and your claims must be honest, not deceptive, and substantiated.  

Social Media and Influencer Marketing  

It’s no question that e-commerce brands will utilize social media to market their products, especially in the beauty realm. However, as easy as it is for you to upload a gorgeous photo of your product or a video showcasing it’s application or results, it’s even easier for the FTC to spot a compliance issue. Not to mention, influencer marketing as a whole. If you choose to partner with a beauty influencer to plug your product, you need to make sure that they use the proper discloser hashtags and statements in their posts. No longer can you get away with secretly sending influencers products and hoping for them to post about it without mentioning your relationship. Now, it is required for influencers to simply and clearly disclose their relationship with the brand to their followers. You also need to make sure that your influencers are hired in writing, with all of your terms spelled out clearly, and especially how payment of fees to influencers will be made. To learn more about influencer marketing guidelines, click here.  

Contact an Internet Business Lawyer  

If you have an e-commerce beauty cosmetics or personal care business – or you are thinking of launching one – make sure you have an experienced e-commerce attorney in your corner. It’s always better to be safe than sorry so get in contact before an issue arises or before it gets any worse.  

Tags: #ecommerce businessbeauty industrybeauty industry legal guideecommerce lawecommerce lawyer
No Comments
Share
0

About Raees Mohamed

Raees is a Founding Partner at RM Warner PLC, a corporate and Internet Law firm that caters to startups and entrepreneurs. He is also an adjunct professor of law in the acclaimed Innovation Advancement Program legal clinic at the Sandra Day O’Connor College Of Law in Phoenix. There, he teaches law students how to counsel local entrepreneurs as Rule 39 certified student-practitioners. Raees believes the push for the advancement of innovation and a culture of entrepreneurship should come from academic institutions.

You also might be interested in

woman pulling out credit card to purchase an item off amazon | RM Warner Inernet Law Firm

Shopping Under the Influence – Drunk on Amazon

Apr 17, 2019

Drunk Amazon Shopping Online shopping has never been faster, and[...]

amazon river for Amazon FBA pun | RM Warner Inernet Law Firm

Save the Sellers: Exploring the Amazon of the FBA Business

Apr 22, 2019

It truly is a jungle out there in the Amazon,[...]

Amazon Black Hat Market | anonymous man in black hoodie holding ipad | RM Warner Inernet Law Firm

Amazon Search Ranking Scams: The Black [Hat] Market

May 14, 2019

It’s no secret that the Amazon marketplace isn’t as easy[...]

Leave a Reply

Your email is safe with us.
Cancel Reply

Recent Posts

  • 5 Essential Agreements Every E-Commerce Site Should Have
  • How to Copyright Your Software Idea: 4 Main Steps
  • 10 Reasons Why You Need a Start-Up Lawyer for Your Online Business
  • Anonymous Blogging and Defamation: Balancing Interests of the Internet
  • In Cases of Internet Defamation, Where Can You Sue?

Recent Comments

  • Raees Mohamed on Cyberbullying Lawyer: How to Sue for Cyberbullying with Defamation Laws
  • Sylvia Richards on Cyberbullying Lawyer: How to Sue for Cyberbullying with Defamation Laws
  • WebDirectory on Can I Sue Someone For Leaking My ‘OnlyFans’ Content?
  • Links.M106.COM on Dr. Dre’s Divorce Battle Is Nothing But a “G” Thang: Soon-To-Be Ex-Wife Fights For the Intellectual Property Rights to His Name
  • Website directory on Can Jussie Smollett be Sued for Defamation?

Contact Us

Send us a message and we'll get back to you, asap.

Send Message
Speak With An Internet Lawyer Today Call Now
  • Defamation Law
  • Internet Law
  • Corporate Law
  • Ecommerce Law
  • Advertising Law
  • Social Media Law
Footer Icon PNG White | RM Warner Inernet Law Firm

Recent Posts

  • 5 Essential Agreements Every E-Commerce Site Should Have
  • How to Copyright Your Software Idea: 4 Main Steps
  • 10 Reasons Why You Need a Start-Up Lawyer for Your Online Business
  • Anonymous Blogging and Defamation: Balancing Interests of the Internet
  • In Cases of Internet Defamation, Where Can You Sue?

Tweets by RMWarnerLaw1

  • RM Warner Instagram
  • Blog
  • Terms of Service

Social Icons Widget

  • RM Warner Law
  • 8283 N Hayden Rd Ste. 229, Scottsdale,
    AZ 85258, United States
  • 1-866-570-8585
  • 866-961-4984
  • admin@rmwarnerlaw.com

© 2020 — RM Warner Law

  • RM Warner Instagram
  • Blog
  • Terms of Service
Prev Next