A wave of class action lawsuits is putting the spotlight on influencer marketing practices at major brands, with consumers alleging that Shein, Celsius, and Revolve failed to disclose paid relationships with social media influencers.
Lawsuit Overview
Consumers have filed class action lawsuits against Celsius Holdings, Shein, Revolve Group, and several influencers, claiming the companies violated the FTC Act and state consumer protection laws by not making it clear that influencers were paid to promote their products.
These lawsuits, filed in California and Illinois federal courts, underscore the growing scrutiny of influencer advertising and the importance of transparency in brand promotions.
Celsius Accused of Misleading Influencer Marketing
A class action lawsuit filed in January alleges that Celsius Holdings and influencers Devon Barbara, Erika Wheaton, and Emily Tanner failed to disclose their financial ties to the energy drink brand.
“Relying on the undisclosed and misleading advertising, Plaintiff and the Class Members purchased…
products and paid a premium, while the products proved to be of a much lower value than the price paid,” — Celsius class action reported. Plaintiff Mariana Dubreu seeks to represent a nationwide class and California subclass of consumers who bought Celsius products in the U.S. from January 2021 onward.
Shein Sued Over Undisclosed Influencer Endorsements A February class action claims Shein and a group of influencers engaged in “deceptive, unfair and misleading” promotions by not disclosing that influencers were paid to endorse Shein products.
The plaintiffs argue that Shein and the influencers made it appear as if endorsements were genuine consumer opinions, not paid sponsorships. As a result, consumers allegedly paid a premium for products that were ultimately of lower value.
“Without having the chance to try the clothes, millions of consumers, including the class representatives and class members, relied exclusively on the advice of social media influencers,” — Shein class action said…
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