Brown Rudnick LLP

04/23/2024 | News release | Distributed by Public on 04/23/2024 14:28

Are You Based in LatAm and Would Like to Conduct a Marketing Campaign in the US? Clara Krivoy Arianna J. Goolsby long arrow

With its diverse consumer base and continuously expanding market opportunities, the U.S. is an attractive destination for companies looking to expand beyond their borders. Below, we summarize several legal considerations for companies planning to launch marketing campaigns in the U.S. so as to gain access to significant economic opportunities in a compliant manner.

  1. Data protection and privacy laws: Compliance with data protection regulations, such as the California Consumer Privacy Act (CCPA), and other federal and local data protection laws is crucial. These laws govern the collection, usage and storage of personal data and obligate companies to protect consumer privacy.
  2. Intellectual property rights: Companies should ensure that any content used in marketing campaigns, including music, videos, images, text, audio and animations, does not infringe on the intellectual property rights of others. This might require obtaining licenses or permissions to use copyrighted materials. Companies should also ensure that their own intellectual property, including trademarks, copyrights and patents, is properly registered and enforceable in the U.S. To learn about how to optimize the value of your intellectual property, you can read Brown Rudnick's article on that topic by clicking here.
  3. Advertising standards: The Federal Trade Commission (FTC) regulates advertising practices to prohibit misleading and deceptive advertisements as well as unfair competition. Companies must be transparent about the commercial nature of the relevant content and clearly disclose whether campaigns involve endorsements, sponsorships, partnerships or the use of influencers to promote a product or service.
  4. Consumer protection: Companies should be aware of federal consumer protection laws, such as the Consumer Product Safety Act (CPSA). The CPSA imposes mandatory safety standards for consumer products sold in the U.S. and subjects certain products to third-party testing and certification requirements before companies can market such products in the U.S. Noncompliance with federal consumer protection laws and state-specific consumer protection statutes can lead to costly liabilities and penalties.
  5. Content guidelines and platform rules: When running marketing campaigns on social media platforms such as Meta, Instagram, X (formerly Twitter) and TikTok, companies should adhere to each platform's distinct guidelines and terms of service, including applicable restrictions on certain types of content, guidelines around user engagement practices and rules concerning the use of promotion features.
  6. Contests and promotions laws: If marketing campaigns include contests, giveaways or promotions, companies should ensure compliance with specific legal requirements related to these activities, including establishing official contest rules and outlining eligibility criteria, entry requirements, prize details and any other relevant terms and conditions that participants should consider.
  7. Age restrictions and targeting minors: Companies should be cognizant of and compliant with laws and regulations related to advertising to children, particularly those outlined in the Children's Online Privacy Protection Act (COPPA). This includes clearly identifying advertisements as such, obtaining verifiable parental consent when required, and ensuring the content is appropriate for the target age group.
  8. Website disclosures: When marketing internationally, it is important to comply with applicable laws, including sanctions programs. Including proper disclaimers on your website helps communicate to potential customers that your business adheres to applicable regulations. To learn about the advantages of having a compliance manual that conforms to U.S. Law, you can read Brown Rudnick's article on that topic by clicking here.
  9. Trade secrets: When marketing and preparing to do business in the U.S., companies should protect trade secrets by limiting access by third parties to sensitive information and implementing nondisclosure agreements. It is also important to keep in mind applicable laws, such as the Uniform Trade Secrets Act (UTSA), which provides a consistent legal framework for the protection of trade secrets across the United States, and the Defend Trade Secrets Act (DTSA), a federal law that allows an owner of a trade secret to sue in federal court when their trade secrets have been misappropriated.

If you are interested in conducting a marketing campaign in the U.S that complies with applicable laws and regulations, let us know. Our team of international lawyers, many of whom are also admitted to practice law in Latin American countries, can help create a tailor-made strategy for your business.