The Celsius Lawsuit: What Content Creators Need to Know

Introduction

The legal landscape for influencers and content creators has become increasingly complex, particularly when it comes to FTC disclosure obligations. The recent case of Dubreu v. Celsius Holdings highlights the need for transparency and accountability in endorsements. Many creators often think that if a brand pushes a certain narrative, they can simply go along without sufficient disclosure. However, the reality is that the responsibility for disclosure lies squarely on the shoulders of the influencer and many content creator agreements provide that as well.

For content creators, this matters deeply. It's not just about doing what feels right; it's about protecting yourself legally. Should a brand's claims come under fire, having strong indemnity provisions in your contracts can shield you from potential fallout. If the brand misrepresents its products or services, you don't want to be left holding the bag.

The Case

The case of Dubreu v. Celsius Holdings centers around the allegations that Celsius, a beverage company, misrepresented their drinks as healthier than they truly are. In this case, influencers who endorsed Celsius products repeated these claims without proper disclosure, leading consumers to believe these endorsements were genuine. As a result, consumers filed suit, claiming they paid higher prices based on the misleading information.

What's pivotal for creators to understand is that this case isn’t just a legal technicality; it highlights a fundamental issue in the relationship between brands and influencers. When influencers fail to disclose their affiliations, they risk their credibility and potentially face legal repercussions.

Why This Matters

This case should make every creator stop and think before hitting “post.” Disclosure is not optional. Even if the brand tells you that a hashtag will hurt engagement, you are the one who will face legal risk if you leave it out. And beyond disclosure, you need to think about what you are actually saying. If the brand gives you claims that turn out to be false, your name could end up in the lawsuit right alongside theirs. That is why contracts matter. A good influencer agreement should tell you exactly how to disclose and should also indemnify you against the brand’s own misconduct. If the company is lying about its product, the contract should make clear that you are not the one who pays the price. The influencers named in this case could have been better protected if they had insisted on both.

Additionally, this is where contractual protections become vital. By including indemnity clauses in your contracts, you create a safety net. An indemnification means that the brand agrees to compensate you for any losses or damages arising from their misconduct. So if you are challenged because of something the brand did, you won’t be left financially exposed.

For more on this topic, you can refer to this article on indemnification on Counsel Club's blog.

Takeaway for Creators

So what can you take away from this situation? Always disclose your affiliations clearly and unambiguously. Don’t rely on brands to manage compliance for you. It’s your image and reputation at stake. Furthermore, ensure that your contracts include indemnity protections. This will provide you with legal cover should the brand's actions come under scrutiny.

How Counsel Club Helps

Counsel Club re-imagines legal for startups, freelancers, and creative entrepreneurs. Our platform allows you to search for lawyer-drafted forms tailored specifically for startups, freelancers, content creators, and other creative professionals. Counsel Club guides you through modifications, both to the contract and the scope of work, ensuring your legal needs are met efficiently.

We pride ourselves on having the most sophisticated drafting tool on the market, designed and developed by lawyers who understand the unique challenges you face. If you require more personalized assistance, feel free to reach out to a Counsel Club lawyer through our Concierge program. Our legal agent, Amicus, has been trained on proprietary legal data to serve as your best legal assistant. Legal for today means it is fast, protective, and cost-effective.

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Ready to protect yourself and your brand? Create your Content Creator Agreement today to ensure comprehensive coverage.