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INSIDE THIS ISSUE April’s Odd Holidays PAGE 1 Making the Most of April Showers PAGE 1
Vacations That Pay PAGE 2
How Lulu the Pig Saved Her Owner From a Heart Attack PAGE 3
Sheet Pan Chicken Dinner PAGE 3
The Fyre Festival’s Legal Fallout for Influencers PAGE 4
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’d also launched an attractive marketing campaign which 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 don’t think anyone could have assumed that it wouldn’t 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. Although more 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!
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