As the digital age continues to grow, businesses continue rely on individuals to market goods and services through their followers across social media platforms. As a result, these individuals, often referred to as influencers, content creators or creatives, are increasingly becoming an integral part of marketing strategies. Whether you’re a YouTuber, Instagrammer, or TikTok creator, your online presence can have a significant impact on brand campaigns, product promotions, and more. However, with great influence comes great responsibility—both legal and ethical.
If you’re an influencer (the term we will use for the purpose of this blog) in Canada or looking to work with Canadian brands, it’s essential to understand the legal landscape that governs your activities. This blog will highlight key legal considerations that influencers should keep in mind when promoting products or services in Canada.
1. Disclosures and Transparency: The Importance of Transparency
One of the most important legal requirements for influencers is ensuring that all paid promotions and partnerships are clearly disclosed to your audience. The Canadian Code of Advertising Standards and the Competition Act both emphasize that advertising must be truthful, clear, and not misleading. The Competition Bureau of Canada has issued guidelines specifically for online influencers, which state that when you are paid, gifted products, or compensated in any other way for promoting a product or service, you must disclose the nature of the relationship.
Key disclosure tips:
- Use clear, understandable language such as #ad, #sponsored, or #partnership in the post.
- For Instagram Stories, use the “Paid Partnership” tool when applicable.
- Ensure disclosures are visible before the user interacts with the content (e.g., not buried in hashtags or hidden in the description).
Failure to disclose properly could lead to fines or legal action from the Competition Bureau.
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2. Copyright and Intellectual Property: Protect Your Content
As an influencer, your original content is a form of intellectual property, and it’s crucial to understand how copyright law applies to what you create and share. In Canada, original works (including photos, videos, written content, etc.) are automatically protected by copyright once they are created, provided they are original and fixed in a tangible form (e.g., a post or video as well as the underlying materials used within the post or video).
Key considerations regarding intellectual property:
- Ownership of Content: If you’re creating content for a brand or under a partnership, clarify who owns the rights to the content. Often, brands will ask for exclusive rights to use the content, so it’s essential to negotiate terms upfront.
- Respect Copyright: Avoid using copyrighted materials (e.g., music, images) without permission. Many influencers fall into legal trouble by using unlicensed music in videos or reposting images they don’t have permission to use.
- Fair Use and Fair Dealing: Under Canadian copyright law, you can use certain copyrighted materials under the fair dealing provisions (for commentary, criticism, etc.) that operate an exception to copyright infringement, but the doctrine is limited and should be approached with caution. Fair use – the term used in the US – operates similarly as an exception to copyright infringement, but with some noted differences. Make sure you are relying upon the correct doctrine based upon the jurisdiction you operate in.
Always ensure that you have the right to use any third-party content in your posts.
3. Privacy and Personal Data: Respect for Your Audience
Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA) regulates how organizations collect, use, and disclose personal information. As an influencer, you may collect personal information from your audience (such as email addresses for giveaways or sign-ups), and it’s essential to ensure you’re complying with privacy laws.
Key privacy tips:
- Be transparent about what data you’re collecting and how it will be used.
- Ensure that you have proper consent from individuals before collecting their personal data.
- Avoid sharing sensitive data without permission, especially in a commercial context.
If you’re working with brands or third-party companies that collect personal data, make sure their practices comply with Canadian privacy laws as well.
4. Consumer Protection: The Fine Print of Reviews and Endorsements
If you’re reviewing or endorsing a product, Canadian law requires you to be truthful about your experiences. Under the Competition Act, any representation made to consumers, including testimonials or reviews, must not be false or misleading.
This means:
- Honesty is Key: Don’t misrepresent the effectiveness, quality, or benefits of a product or service, especially if you haven’t personally used it.
- Avoid Fake Reviews: It’s illegal to write or solicit fake reviews or testimonials. If you’re posting reviews as part of an agreement with a brand, ensure they reflect your genuine opinion, and disclose any compensation.
Additionally, if you’re offering an opinion on something that could impact the purchasing decision, make sure to back it up with facts or personal experience.
5. Contracts and Agreements: Protecting Yourself Legally
When entering into agreements with brands, agencies, or other influencers, always use a formal contract. A well-drafted contract can help protect your interests and set clear expectations for both parties. Some essential elements of an influencer contract include:
- Compensation: Whether you’re being paid in money, products, or services, clarify the payment terms, including the amount, timing, and method.
- Deliverables and Deadlines: Define what content needs to be produced, the format (e.g., photos, videos, blog posts), and any deadlines.
- Exclusivity and Restrictions: Some contracts may include exclusivity clauses that restrict you from promoting competing products for a certain period. Understand these terms to avoid unintentional breaches.
- Content Ownership: As mentioned above, specify who owns the content you create. Brands may want the right to use your content in their own marketing materials, indefinitely or for a specified period of time.
Having a lawyer review your contracts is always a good idea to ensure they are fair and legally binding.
6. Defamation and Reputation Management: Be Cautious with Your Words
As an influencer, your words and actions online can have a significant impact—both positive and negative. Be cautious about making defamatory statements that could damage the reputation of others or businesses. Defamation is the act of making false or damaging statements about someone, and in Canada, it can lead to serious legal consequences.
Avoid these pitfalls:
- Don’t make baseless claims or personal attacks on others or businesses.
- If you’re expressing an opinion, ensure it’s clearly stated as such, and refrain from misleading others.
Having a strong reputation is crucial for influencers, so managing your online presence and practicing responsible communication is important.
7. Tax Obligations: Reporting Income and Deductions
Influencers in Canada are required to report their income to the Canada Revenue Agency (CRA). This includes money received from sponsored content, affiliate marketing, product reviews, and other revenue-generating activities.
Important tax tips:
- Income Reporting: Whether you receive cash, free products, or services, these are considered income and must be reported.
- Business Expenses: Influencers can deduct certain business expenses related to creating content, including equipment, marketing costs, and travel expenses. Keep detailed records of your transactions.
- GST/HST: If you earn over $30,000 annually from your influencer activities, you may need to register for GST/HST and charge tax on your services.
Consult a tax professional to ensure you’re in compliance with tax laws.
Conclusion
As an influencer in Canada, navigating the legal landscape is essential to protect both yourself and your business. By ensuring compliance with advertising rules, copyright laws, privacy standards, and consumer protection regulations, you can build a trusted and legally sound career. Always be transparent with your audience, carefully consider your partnerships, and, when in doubt, seek professional legal advice.
Stay informed, stay compliant, and continue to grow your influence responsibly.
© 2025 Edwards Creative Law, LLP
Updated to March 19, 2025
Edwards Creative Law is Canada’s Entertainment Law Boutique™, providing legal services to Canadians, and international clients who partner with Canadians, in the Film & Television, Music, Video Games and Apps, Publishing and Literary industries.
For more information or to set up a minute Discovery Call with one of our entertainment lawyers please feel free to Contact Us.
* This blog is for general informational purposes only and is not to be construed as legal advice. Please contact Edwards Creative Law or another lawyer, if you wish to apply these concepts to your specific circumstances.
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