Hegwood Law - April 2021

UP IN FLAMES The Fyre Festival’s Legal Fallout for Influencers

Influencer marketing has long been a legal gray area, but recently settled celebrity lawsuits related to the Fyre Festival — a failed luxury musical festival — have definitely added some color to the debate. The idea for the Fyre Festival came from rapper Ja Rule and his business partner, Billy McFarland, a 25-year-old CEO of a luxury concierge service. The duo created the event together and touted it as the world’s most expensive music festival. They had also launched an attractive marketing campaign that included celebrity promotions by Kendall Jenner, Bella Hadid, and other influencers. All the while, the organizers knew the Fyre Festival was doomed from the start. In lieu of a multiday, luxury experience, thousands of people were scammed and left stranded in the Bahamas instead. "[The organizers] had six to eight weeks to pull off something that should have taken close to a year," says Chris Smith, who directed a Netflix documentary on the festival. "But what was most surprising to me was going to the Bahamas and seeing the aftermath of what was left behind and the effect on the people there." The local economy was devastated. "They had engaged with so much of the local community to try and pull this off. There were hundreds of day laborers working," says Smith. "Fyre had such a high profile that I do not think anyone could have assumed that it would not work out."

As the Fyre Festival fell apart, Gregory Messer — the trustee in charge of overseeing the bankruptcy for Fyre Media — looked into the finances. He began to suspect that there had been “fraudulent transfers” between the founders and many of the event’s promoters, and he began to sue the celebrities and influencers that drove the hype behind the festival. For example, McFarland and Ja Rule reportedly paid Kendall Jenner over $275,000 to publish an Instagram post promoting the festival. Although Jenner denied liability, she did not disclose on the post that it was paid and sponsored. Messer’s attorney further argued that Jenner had not told her Instagram followers that she’d pulled out of the festival after learning of its disastrous problems.

Althoughmore legal parameters will likely spring up in the future to further define the limits of influencer marketing, this will certainly make any celebrity think twice about accepting money to promote events and brands. And that’s definitely for the best!

5 HILARIOUS PRANK IDEAS — EVEN DURING QUARANTINE 5 Positivity Tips for OptimismMonth!

One of the best ways to bond with our loved ones is to create new memories together. What better way to do that than with pranks? Even if it feels like your usual April Fools’ Day pranks are off the table during a pandemic, you can have fun with friends and family in harmless ways, no matter how far away they are. No. 1: Sign them up for an unusual mailing list. If someone in your family is a cat lover, it might be hilarious to get them on a dog fun-fact email list. It is a harmless prank, but you will still want to choose a legitimate organization, like the Ferret Association of Connecticut, which provides several newsletters, if you are curious. No. 2: Text a ‘typing dots’ GIF. Send them an animated picture of the typing dots graphic, andmake them wait for your next message for eternity … until they break the silence and realize it is fake, of course!

watch the horrific expressions of your loved ones. This works even from a distance — just take a video to share!

No. 4: Serve breakfast, ready and frozen! Your partner or kids might think you are doing an act of kindness by preparing them breakfast ... but, instead of it being hot and ready, you can serve it frozen. Put a bowl of cereal with milk and the spoon in the freezer for a couple hours, then put it on the table and watch people struggle.

No. 5: Turn that screen upside down. During quarantine, you are likely spending more time on the

computer. You can turn a Windows 10 computer screen upside down by pressing Ctrl+Alt+Down Arrow! Watch them panic, but to fix it before they get really mad, just press Ctrl+Alt+Up Arrow. No matter what you are doing on April 1, we hope you have fun with it! Have a safe, silly April Fools’ Day, everyone.

No. 3: Eat pudding like it is mayo. Replace all of the mayo in a mayo bottle with vanilla pudding and

2 HEGWOOD LAW GROUP

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