🚨 $43,792 FTC Fine Per Non Compliant UGC Now in Effect -->

COMPLIANCE

$43,792 fine per influencer post now in effect. Get FTC compliant ASAP.

Blog /

FTC Compliance

How to Make Class Action Lawyers Walk Away: The Compliance Cheatcode for Influencer Lawsuits

$43K fines. $50M class actions. Influencer posts are now the most legally volatile ad format in marketing and most brands are still flying blind. This guide breaks down exactly what class action lawyers look for before deciding to sue, and how to build the kind of proof that makes them walk away.

July 9, 2025

Kaeya Majmundar

Co-Founder & CEO, SwayID

Influencer posts are now legal landmines.

$43K fines. $50M lawsuits. Influencer posts are the most legally volatile ad format in marketing today. And most brands still rely on contracts and hashtags to survive.

That won’t cut it.

Class action lawyers and FTC regulators no longer care what your contracts said. They care what you can prove.

This is your cheat code: the 5 things they look for before deciding whether or not to come after you.

Lawsuit Breakdown: What Went Wrong and How Structured Proof Could’ve Prevented It

These aren’t hypotheticals. Here are recent examples of influencer campaigns that triggered legal action — and how it could’ve been avoided with a shared record of good faith.

‍

Case Name	Failure Pattern	Missing Principle	What Would’ve Helped
Prose Class Action	Creator made non-FDA-approved claim	#1: Operate in good faith	Embedded compliance that blocked claim or required justification
Bioray Lawsuit	Product claimed to "remove toxins" via influencer post	#4: Shout it from the rooftops	Public, timestamped disclosure with health substantiation
Olaplex TikTok UGC Claims	Creators claimed hair regrowth with no disclaimer	#2 & #4: Mutual system + Shout it from rooftops	Mutual system with brand-reviewed disclosures before publish
Celsius FTC Fine	No visible paid disclosures from influencers	#3: Continuously log good faith	Immutable audit trail proving intent and timing

‍

What Class Action Lawyers Need to See to Walk Away

If you can’t prove what happened, when it happened, or what your creators were told, class action lawyers see opportunity.

But when every decision is timestamped, mutual, and publicly defensible, they move on.

Here are the five things that determine whether they stay or walk:

‍

Principle	Default Standard	SwayID Standard
1. Operate in good faith	❌ Fail: Non-demonstrable Compliance relies on contracts, #ad tags, legal reviews, or post takedowns, none of which prove intent or timing.	✅ Pass: Operationalized Embedded directly into the creator’s workflow: guided, contextual, and proactive.
2. Only work with others who do too	❌ Fail: Asymmetric Brands hand off risk to creators through one-sided contracts without shared tools, shared logs, or shared understanding.	✅ Pass: Mutual Creators and brands operate in the same system with shared visibility, shared language, and shared proof.
3. Continuously log good faith	❌ Fail: Indefensible Chain of Evidence Proof lives in unaligned screenshots, inboxes, or spreadsheets. Fragmented and easy to challenge.	✅ Pass: Defensible Chain of Evidence Every action (disclosure, approval, and revision) is logged in a shared, immutable audit trail.
4. Shout it from the rooftops	❌ Fail: Intent is hearsay Output defaults to deceptive if you can’t show any input.	✅ Pass: Intent is evidenced Transparency is built in: standardized, shareable disclosures and public signals.
5. Safety net	❌ Fail: Reactive There’s no structural fallback. Legal defense only begins after damage is done (if you can afford it).	✅ Pass: Proactive Legal protection is built in up to $25K per compliant post. Defense is pre-positioned, not panic-purchased.

‍

The Bottom Line: Structure = Survival

Lawsuits aren’t just about mistakes. They’re about missing proof of good faith.That’s why we built SwayID: the first structured defense system for influencer and UGC campaigns.

Email legal@swayid.com with the subject line “Read the Blog” and we’ll give you a free 1 hour legal consultation.

Disclaimer: This post was written by our Founder & CEO, Kaeya Majmundar. She’s not a trained lawyer but she personally fended off over $4M in lawsuit threats using the exact system described here. This post is for informational purposes only and does not constitute legal advice. Always consult a qualified attorney for legal counsel tailored to your situation.

Thank you! Your submission has been received!

Oops! Something went wrong while submitting the form.

Get the protection you need.

Built by a founder who survived $4M+ in legal threats — and productized the system that worked.

Get it now

We swear by SwayID like our life depends on it...because it did.

Built from two years of litigation, SwayID kept us alive. Sign up for our founder’s newsletter — founder-grade insight on influencer lawsuits, regulation, and legal survival.

Thank you! Your submission has been received!

Oops! Something went wrong while submitting the form.

SwayID is not an attorney or a law firm. Nor is it a substitute for an attorney or law firm. We do not provide legal advice nor do we practice law. This site only contains legal information, not legal advice. This site does not create an attorney-client relationship. We provide no guarantee regarding case outcomes nor are we liable for any case outcomes. Use of its products are governed by its Terms of Service, Privacy Policy, and Legal Disclaimer.

How to Make Class Action Lawyers Walk Away: The Compliance Cheatcode for Influencer Lawsuits

Lawsuit Breakdown: What Went Wrong and How Structured Proof Could’ve Prevented It

What Class Action Lawyers Need to See to Walk Away

The Bottom Line: Structure = Survival

Browse by topic

Why Exchanging Giveaways for Positive Reviews is Risky

How the FTC is Cracking Down on Fake Reviews

Balancing Technology and Authenticity in Influencer Marketing

Why Buying Fake Followers and Likes Backfires

FTC Guidelines on Social Proof and Endorsements

The Cost of Manipulating Amazon Reviews on Your Business

Why AI-Generated Influencer Content May Violate FTC Rules

FTC Guidelines on Testimonials and Endorsements

Building Trust with Genuine Customer Reviews

Get the protection you need.