Influencer marketing: disclosure duties and legality

Service page: Digital commerce and AI lawyer: terms, privacy and direct mailing.

What does Israeli law say about influencer marketing?

You sent a product to an influencer, they published an enthusiastic post, and it did not contain the word “advertisement”. Sounds like ordinary marketing? Under the law, it is a breach. And you, as the brand, are also exposed to a penalty, not only the influencer.

The legal basis is in the Consumer Protection Law, 5741-1981: an advertisement that may lead a reasonable person to assume that its content is not an advertisement is misleading advertising, even if its content is true (section 7(c)(1)). In 2021 the Consumer Protection and Fair Trade Authority published a position on presenting reviews and ratings online, including through bloggers and online influencers. So every commercial collaboration between a brand and an influencer, whether for money, a product, a discount or a promo code, requires express and clear disclosure in the post itself, in a prominent place. I recommend placing it at the start of the content, so that the consumer does not need to take any further action to understand that it is an advertisement.

The Consumer Protection and Fair Trade Authority enforces the rules against brands and marketing agencies too, not only against influencers. A brand that has not built a mechanism to control disclosure cannot hide behind “we didn’t know”. A consumer who bought after an advertisement that was not marked can act on two tracks: a complaint to the Authority, or filing a consumer claim against the brand itself.

Which areas are subject to especially strict regulation?

Not every campaign is judged with the same strictness. In some areas the regulation is tougher, and influencers and brands need to know where they stand.

Cosmetics and health: if an influencer claims that a product “makes the skin young again”, “causes weight loss” or “strengthens the immune system”, the claim must be based on research. Presenting a product as a means of treating any disease without a scientific basis is an offense under the Consumer Protection Law, and may also lead to liability under the Pharmacists Ordinance [New Version], 5741-1981 (פקודת הרוקחים [נוסח חדש], התשמ״א-1981).

Food and food supplements: the National Food Service at the Ministry of Health sets express rules on what may be claimed about food supplements. Claims such as “will fight cancer” or “will restore complete sleep” are prohibited: the Protection of Public Health (Food) Law, 5776-2015 (חוק הגנה על בריאות הציבור (מזון), התשע״ו-2015) prohibits attributing healing properties to food (section 13). The influencer is exposed, but the brand that sent the brief is exposed no less.

Financial services: an influencer who recommends an investment, insurance or a loan, even if they only said “this looks good to me”, may be considered to have given financial advice without a license. Giving investment advice without a license is a criminal offense under the Regulation of Investment Counseling, Investment Marketing and Portfolio Management Law, 5755-1995 (חוק הסדרת העיסוק בייעוץ השקעות, בשיווק השקעות ובניהול תיקי השקעות, התשנ״ה-1995); recommendations on insurance, pension or loans are subject to their own licensing rules. Before the influencer talks about money, they (and you) need to make sure it is allowed.

What must a contract between a brand and an influencer include?

“We agreed on WhatsApp” is not a contract. And when a dispute comes, it protects no one. Every collaboration with an influencer needs a written contract with specific clauses.

What must be in the contract: an exact definition of what is provided (number of posts, stories, videos, platforms); exact wording of the disclosure duty, including the requirement that the disclosure appear in the first lines of the post; the influencer’s declaration that all information they publish is accurate and not misleading; and clear ownership of the content created, meaning whether the brand can use it in its own advertising, and for how long.

Two clauses people forget: an indemnity clause, under which the influencer undertakes to indemnify the brand if a claim is filed because of content they published in breach of the law; and a termination clause: what happens if the influencer did not meet the terms, published without disclosure, or published content that contradicts what was agreed.

When is a brand responsible for what an influencer said?

The Consumer Protection Law (section 2) prohibits a dealer from doing anything, including in an advertisement, that may mislead a consumer on a material matter in the transaction, and this liability applies to both sides. If the brand supplied the brief with the problematic claims, it is the party on whose behalf the advertisement was made, and it is regarded as being in breach (section 7(a)(1)), even if it was the influencer who published.

Anyone who distributed the advertisement or actually decided on its publication is also regarded as being in breach, if it is misleading on its face or if they knew it was misleading (section 7(a)(2)).

An important point for influencers: if the brand asked you “not to write that it is an ad”, refuse the request in writing. Covert advertising is misleading advertising (section 7(c)(1)), and publishing it may be an offense (section 23(a)(3)), an offense of the brand on whose behalf it was made, but the influencer who obeys the instruction is also exposed. Records showing that you acted according to the law, and not according to the instruction, are your protection.

Can a consumer sue the influencer and the brand?

Yes. A consumer who bought a product on the basis of a misleading post can sue the influencer (for misleading the consumer) and the brand (for false advertising) together. The claim can include a refund of the money paid for the product and compensation for damage caused (section 31). Exemplary damages without proof of damage are awarded only for the breaches listed in section 31A, and covert advertising is not one of them.

Covert and misleading advertising on social media is also a recognized cause of action for motions to certify class actions against advertisers.

What can the Ministry of Economy and Industry do, and how do you file a complaint?

The Commissioner for Consumer Protection, who heads the Consumer Protection and Fair Trade Authority, is the body that enforces the Consumer Protection Law, including in influencer marketing. The Commissioner’s powers include an administrative warning (section 22M), and a monetary sanction for misleading: NIS 45,000 for a corporation (adjusted: NIS 53,070 in 2026) and NIS 25,000 (NIS 29,490) for anyone who is not a corporation, under section 22C(b) of the Law; one and a half times as much in aggravating circumstances (section 22D); and in serious cases, criminal proceedings under section 23 of the Law.

Any person may file a complaint with the Authority, and it is examined. An important point: the argument that the post represents a “personal opinion” is not a sufficient defense. If the claim may mislead a consumer, liability exists even if the influencer posted in the first person.

Are there special restrictions on professionals and public figures?

Yes. If the influencer is also a licensed professional, such as a doctor, a lawyer or a CPA, they are also subject to the ethics rules of their own profession, and not only to the Consumer Protection Law. Some advertisements will be completely prohibited for them, even if they are lawful for an “ordinary” influencer.

Public figures (elected officials, senior officials) are subject to further restrictions concerning conflicts of interest and the duty of public disclosure. Before collaborating with a public figure, it is worth making sure that the advertisement does not raise a conflict-of-interest problem.

Checklist before a sponsored post goes up

1. Disclosure in the post itself: a clear marking that it is an advertisement, preferably at the start of the content. An advertisement that a reasonable person may think is not an advertisement is misleading advertising even if its content is true (section 7(c)(1) of the Consumer Protection Law).
2. Evidence for every factual claim about the product or about the results of using it: the Commissioner may demand it from the party on whose behalf the advertisement was made, and if it is not presented to the Commissioner’s satisfaction, this is prima facie evidence of misleading advertising (section 7(b)).
3. Food and food supplements: do not attribute a property of strengthening, healing or preventing disease, unless the food legislation permits it (section 13 of the Protection of Public Health (Food) Law, 5776-2015).
4. Investments, insurance and loans: check in advance whether the content may be considered advice or marketing that requires a license.
5. A written contract: the wording of the disclosure, approval of the content before publication, indemnity, and termination terms.
6. Records: a screenshot of every post as it was published, with the date of publication.