Influencer Disclosure Crackdowns: New State Laws and What Brands Need to Get Compliant Now
For years, influencer disclosure compliance was treated as a minor housekeeping issue — a hashtag here, a vague disclaimer there, mostly ignored by enforcement and rarely tested in court. That era is over. In the first half of 2025 alone, five class action lawsuits were filed against major brands including Shein, Revolve, Celsius, and Alo Yoga collectively seeking over $1.1 billion in damages for undisclosed influencer partnerships. The FTC current civil penalty stands at $53,088 per violation. New York and California have both passed state-level laws that go beyond federal requirements and impose their own liability frameworks. What was once a compliance checkbox is now a genuine legal and financial risk — and most brands' current practices aren't remotely adequate.