Private Plaintiffs Surge Ahead of FTC in Cracking Down on Influencer Marketing Deception
In a dramatic shift shaking up the $30 billion influencer marketing industry, private plaintiffs are filing multimillion-dollar class actions against brands and social media stars for deceptive endorsements, often sidelining the Federal Trade Commission (FTC). These influencer marketing class actions, driven by private plaintiffs lawsuits over FTC endorsement guides violations, undisclosed paid endorsements, and consumer protection influencer suits, highlight growing consumer backlash against hidden sponsorships that mislead shoppers into overpaying for products.
This surge comes as the FTC, under a potentially less aggressive Trump administration, takes a backseat, allowing everyday consumers to lead the charge through state courts. With cases demanding up to $500 million in damages, brands like Revolve, Shein, and Celsius are scrambling to defend their marketing strategies.
The Rise of Consumer-Led Lawsuits: A New Era in Advertising Accountability
For years, the FTC has been the watchdog policing influencer disclosures, issuing guidelines that require clear labels like “#ad” or “paid partnership” for sponsored content. But in 2025, private plaintiffs have stolen the spotlight, filing at least five major class actions in the first half of the year alone. These suits allege that influencers and brands violate state consumer protection laws by burying or omitting disclosures, tricking consumers into believing endorsements are genuine.
Experts attribute the boom to evolving “Little FTC Acts” in states like California, Illinois, and Florida, which empower individuals to sue under standards mirroring federal rules. “These cases follow a very similar formula,” notes a recent analysis, emphasizing how plaintiffs leverage FTC guides to argue deception without needing agency intervention.
Spotlight on Key Cases: From Fashion to Energy Drinks
The trend kicked off in January 2025 with Dubreu v. Celsius Holdings, a Central District of California suit accusing the energy drink maker and influencers like Devon Windsor of misleading promotions. Plaintiffs claimed posts touting “fewer calories than an apple” lacked clear sponsorship tags, seeking $450 million under California’s Unfair Competition Law and similar statutes.
February brought Bengoechea v. Shein, targeting the fast-fashion giant and seven influencers for burying disclosures in hashtags like #SHEINSXYxSTAS. The suit, estimating $500 million in damages, argues such tactics violate the FTC Act and Illinois consumer laws, misleading shoppers on product authenticity.
April’s Negreanu v. Revolve demanded $50 million, naming influencers for presenting paid posts as organic style tips without “#ad.” More recently, Sulici v. Alo Yoga hit 15 influencers for confusing tags like #aloRUNNER, alleging violations across 20+ states. These cases often rope in individual stars as defendants, amplifying personal liability risks.
Why the Shift? FTC’s Waning Role and Plaintiff Power
The FTC’s endorsement crackdowns have slowed under new leadership, with no major influencer actions in 2025 compared to prior years. This vacuum has emboldened plaintiffs’ attorneys, who see lucrative opportunities in class actions offering nationwide relief. “Even if the FTC shifts priorities, plaintiffs’ attorneys are prepared to step in,” warns a legal briefing.
Public reactions amplify the momentum. On X, users decry “fake reviews” in threads like “influencer marketing class actions private plaintiffs,” with one post noting, “Finally, accountability for those hidden ads!” Experts like those at Morgan Lewis advise brands to audit campaigns, ensuring influencers understand products and use conspicuous disclosures.
Impact on U.S. Consumers and Brands: Trust, Wallets, and Marketing Shifts
For everyday Americans, these suits mean potential refunds if you’ve bought overhyped products via influencers—class actions could return millions to deceived shoppers. Economically, they challenge a $30 billion industry, possibly raising marketing costs as brands invest in compliance training. Lifestyle-wise, expect more transparent social media, fostering genuine trust in endorsements amid rising skepticism.
Politically, the trend underscores regulatory gaps under Trump 2.0, where reduced FTC enforcement shifts burden to states and individuals. Technologically, it pressures platforms like Instagram to enhance disclosure tools, influencing how 150 million U.S. users engage with content.
Conclusion: A Wake-Up Call for Authentic Influence
As private plaintiffs drive the narrative in influencer marketing class actions, the FTC’s traditional role dims, ushering in an era of consumer-empowered accountability. With trials looming and more suits expected, brands must prioritize clear disclosures to dodge multimillion-dollar pitfalls. Looking ahead, this could foster a more ethical digital marketplace, but only if influencers and companies adapt swiftly. In the end, influencer marketing class actions, private plaintiffs lawsuits, FTC endorsement guides violations, undisclosed paid endorsements, and consumer protection influencer suits will define transparency in 2025 and beyond.