In contemporary times, social media is the quintessential platform for marketing, where celebrities and influencers are playing a crucial role in promoting brands and products. It is often seen with celebrity endorsements that informal agreements often in the form of barter deals take place, primarily as they are inherently attractive. Small brands, seeking exposure and for the promotion of their products, enter into such arrangements with public figures and expect a spillover effect from these personalities in exchange for the better reach through their huge fan following on social media. However, without a formal contract these deals often leave brands in the vulnerable position, as exemplified in the case involving actress and influencer Avneet Kaur regarding the jewellery brand RANG by Akanksha Negi. This incident sheds light on the legal complications surrounding informal agreements, which is a clear call for the need for legal protection and accountability.
The RANG & Avneet Kaur Incident
The situation between Avneet Kaur and RANG is a testament on how informal agreements can go wrong. In June 2024, RANG, a small jewellery brand, entered into a verbal agreement with Avneet's stylist, that it would supply jewellery for Avneet's month-long European vacation. In exchange, Avneet had to tag RANG in her social media posts, providing the exposure to the brand.
RANG sent nine exquisite pieces of jewellery, trusting that the actress would honour the agreement. Avneet wore the jewellery on seven different occasions, pairing it with high-end brands like Dior and Vivienne Westwood. However, while she tagged the luxury brands, she didn't give credit to RANG in any of her posts, very conveniently sidelining the small brand that had lent her the accessories. Further, when RANG contacted Avneet's team her stylist initially assured the brand that Avneet would tag them in subsequent posts. Yet, after multiple follow-ups, Avneet offered to pay for the jewellery instead of honouring the original deal, indicating a fundamental breakdown in the barter agreement. Despite her promise to do a story credit, RANG was left with no choice but to present an invoice to her for the jewellery.
Legal Implications Of Verbal Agreements
This scenario raises crucial questions about the enforceability of verbal agreements in the context of celebrity endorsements. From the legal perspective, any kind of verbal agreement is enforceable when its basic offer, acceptance, and consideration can be proven. However, the problem lies in proving the existence of such an agreement, particularly when such an exchange is informal.
In the case of RANG and Avneet Kaur, it can be seen that there was a clear offer (the jewellery), acceptance (Avneet receiving the pieces), and consideration (social media exposure) but the absence of a written contract makes it difficult for the brand to enforce the terms. Without clear agreement on the terms being documented, small brands like RANG will stand at a vulnerable position having to rely upon goodwill and trust, which, this case has shown, can be easily violated.
When such a scenario occurs where celebrities and influencers wear items of particular brand without giving credit, the concern is also with regard to intellectual property (IP) rights. Small brands, whose business models often rely on celebrity endorsements, the association of these products with other luxury brands, like in Avneet's case, can also dilute the value of the small brand's IP.
Why Formal Contracts Are Essential?
Written contracts ensure that each party understands what is expected on each side, and they can take the legal recourse if one party fails to uphold the agreement. In RANG's case, a written contract would have specified the fine details of the deal such as social media post, specific number of tags, or what other ways the celebrity would promote the brand.
Such contracts give scope to the parties to be liable for breach whether that involves monitory compensation, return of products, or another recourse. Unless safeguard comes into existence, small businesses remain at the mercy of the celebrities.
The Path Forward For Small Brands
The case of Avneet Kaur and RANG highlights a broader issue within the influencer community such as the need for legal awareness and protection of small brands. Informal agreements may seem simple and clear, but are concealed with traps. Brands can save themselves from such pitfalls and ensure that investments in celebrity endorsements are given their due by securing formal contracts. Formal contracts are very important in the celebrities marketing world, where celebrities hold considerable power, the law protects vulnerable small brands. The best defence for the business is a solid legal foundation backed by clear, enforceable agreements.
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