For years, influencer marketing enforcement has largely been the domain of the FTC, but two consumer class actions filed in early 2025 signal that private plaintiffs may be stepping in to share the spotlight. Two cases—filed just days apart—target brands and influencers alike for allegedly failing to disclose paid endorsements, signaling a possible shift in how influencer marketing will be policed.
Bengoechea et al. v. Shein et al., No. 1:25-cv-01402 (N.D. Ill., Feb. 10, 2025)
In this nationwide class action, consumers name both fast-fashion giant, Shein, and a group of influencers as defendants, alleging they worked together to create a façade of organic social media buzz while concealing paid endorsements. The influencers—Bianca Anastasia Arcori, Abby Bagley, Manuela Brit, Tala Golzar, Anastasia Karanikolaou, Cydney Moreau, and Cindy Prado—are accused of promoting Shein products without clearly disclosing that they were being compensated for their content. The lawsuit claims Shein's growth in the U.S. market, including a leap from $3 billion in global revenue in 2019 to $30 billion in 2022, was fueled by these deceptive marketing practices.
Specifically, the plaintiffs allege:
- Influencers were compensated to promote Shein products but did not disclose their material connection to the brand in resulting content;
- Disclosures—if made at all—were buried in long hashtags or hidden behind "more" buttons, rather than being "clear and conspicuous";
- Plaintiffs relied on these posts in deciding to purchase Shein products and paid a premium, only to receive items of substantially lower quality.
The complaint cites violations of the FTC Act, as well as "little FTC Acts" in states like Illinois, California, and Pennsylvania.
The plaintiffs seek injunctive relief, disgorgement, and more than $500 million in damages.
Dubreu v. Celsius Holdings, Inc. et al., No. 5:25-cv-00180 (C.D. Cal., Jan. 22, 2025)
Just weeks earlier, in a similar case filed in California, both energy drink company, Celsius, and three influencers—Devon Barbara (aka Devon Windsor), Emily Tanner, and Erika Wheaton—were named as defendants in a proposed nationwide class action.
Key allegations include that:
- Celsius and the influencers deceptively marketed the brand's products by posting photos and videos that appeared to reflect genuine, unpaid enthusiasm—without disclosing that the endorsements were actually paid promotions;
- If any disclosures were included, they were "buried" or presented in a way that made it "almost impossible" for users to discern that the post was sponsored;
- Plaintiff would not have purchased Celsius products, or paid as much for them, had she known the posts were sponsored.
The lawsuit asserts claims under the FTC Act as well as California's Unfair Competition Law, False Advertising Law, and Consumers Legal Remedies Act.
It estimates damages of at least $450 million and seeks class-wide relief.
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These two suits make clear that even if the FTC shifts its enforcement priorities, plaintiffs' attorneys are prepared to step in—and that both brands and influencers face significant legal exposure, including multimillion-dollar class actions, if they fail to clearly and conspicuously disclose paid endorsements.
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