Fitness apparel brand Gymshark is facing a proposed class-action lawsuit in California over allegations that some influencer marketing campaigns failed to adequately disclose paid endorsements.
The complaint argues that consumers may have viewed the posts as independent recommendations rather than paid advertising. The plaintiffs are seeking class-action status and claim that the alleged disclosure issues may have influenced purchasing decisions.
Sponsored content disclosures
In the United States, the Federal Trade Commission has repeatedly stated that creators should clearly disclose material connections with brands when promoting products.
These disclosures are typically made through labels such as “ad,” “sponsored,” or similar language that informs viewers a creator received compensation or other benefits in exchange for the promotion.
The lawsuit argues that some Gymshark-related content did not meet those standards, though the company has not been found liable for any wrongdoing.
Influencer marketing remains a major industry
Gymshark built much of its brand awareness through partnerships with fitness creators, athletes and influencers across platforms, including YouTube, TikTok and Instagram.
The company was among the early brands to heavily invest in creator marketing, helping popularize a strategy that has since become common throughout the fitness industry and beyond. Today, influencer campaigns represent a significant portion of advertising spending for many consumer brands.
As creator marketing budgets continue to grow, disclosure practices have become an increasingly important issue for brands, agencies, platforms and regulators.
Recent years have seen increased enforcement actions, updated advertising guidelines and greater emphasis on transparency in influencer marketing. Platforms have also introduced tools that allow creators to label paid partnerships directly within posts and videos. As of writing, Gymshark’s case has not been decided in court.
Featured image courtesy: Gymshark