The internet and social media platforms are rich with independent users that have built sizeable audiences ranging from hundreds of thousands to millions of followers.  In many cases these grass-roots campaigns have resulted in viewers that rival or top conventional media outlets.  As a result, many companies have learned that they can get their product or service in front of like-minded individuals at a lower cost than television or radio commercials.  In many cases, these social media endorsements are more powerful and engaging because people have a connection with the influencer they follow.  As with any marketing endeavors, it is important to protect your company and follow the Federal Trade Commission (FTC) rules and regulations.

How Companies Should Protect Themselves

In a recent article by Legal Matters we have read more about his subject, and how some companies have been flagged for non-disclosure violations.  These brands include Lord & Taylor and Warner Bros. Home Entertainment.  Both of which had to make settlements with the FTC for violations.  Specifically, they had failed to release the relationship they had with big-follow social media creators.  In these specific cases, the followers were compensated roughly $4,000 for an endorsement of their product.  Instagram has become feverishly popular over the last couple of years and companies need to ensure they are marketing their products or services within certain guidelines to avoid violation.

What Can Be Done to Avoid Penalties?

The most important take-away is to understand that according to FTC guidelines, consumers have a right to know whether a certain brand is being endorsed by the influencer’s own violation, or if they have a partnership with a company in exchange for free products or future payments.  In this case, the influencer and the companies failed to disclose their relationship, which violates FTC’s disclosure recommendations.  Remember that if your company is investing in advertising it is well worth your time to speak with an attorney to help ensure you are following FTC and online regulations.  The money you pay an online influencer can pale in comparison to the amount certain violations may bring.  In some cases, these disclosures can be adhered to with an online statement, or #hashtag such as #ad #paidadvertisement or #sponsoredpost at the beginning of the post.  Please feel free to contact our office to learn more about how law firms such as BLPG can help protect companies in their online and social media marketing strategies.

Would it surprise you to know that roughly 90 percent of all businesses in America are family-owned?  Perhaps even more surprising is the fact that only 30 percent of them are passed on the next generation within the family.  Of that small 30 percent, less than half make it to a third generation.  It is a shame that so many family businesses get lost, absorbed or simply abandoned once the original creator dies or retires.  One way that can greatly protect a business for generations is creating and implementing a succession plan.  This article is going to cover some key aspects of a succession plan and questions that should be answered as part of creating this document.

Why a succession plan doesn’t always happen

One of the largest reasons a succession plan is not created when it should be is simply because planning for the future can be difficult.  Ideally, a succession plan should be created when an owner and entrepreneur is young so they can mentor the next generation to take over the business.  This is true whether the apprentice is a family member, a trusted employee or a partner.  Many owners find it difficult to face the reality that they may one day have to pass the torch to another.  Many companies arise from years of hard work, dedication, and sacrifice.  It is therefore important to find peace of mind by knowing that a succession plan addresses who will be in control of the business, and how it will be operated in the future.

Questions this plan should address

Who will take over when the owner/operator is gone?

Ideally, this will only happen once an owner is ready to retire and can comfortably pass control when they are ready.  As we all know, life can be hard to predict and unexpected tragedy can strike.  Succession plans should address who should take over if the owner dies from an accident or unforeseen health concern.

How much control would you like to retain?

One key item to consider is certain gifting strategies that will business owners to transfer portions of a business into a trust account for beneficiaries and children to protect wealth for future generations.  You can implement these trusts while still maintaining as much or as little control over the business as you would like.  Certain estate planning documents will address if your children will one day take over the business, and how they will gain the necessary management experience to do so successfully.

Contact Bowen Law Professional Group for any questions or concerns regarding a business succession plan.  This is true whether you need one, or have one that is in need of modification.  Our experienced staff can help you address key items such as income streams, tax considerations, capital gains, and many other financial planning items along with the general planning tasks mentioned above.