Gymshark class action claims creators were told not to disclose paid posts
Gymshark is facing a class-action lawsuit from a Florida resident over creator ad disclosures, according to Tubefilter and Marketing Ethics. The complaint alleges that Gymshark compensated creators for posts that were not disclosed as ads and used non-compete terms that blocked those creators from promoting rival brands. The suit argues that hidden sponsorships made Gymshark appear more organic and popular than it was. Tubefilter noted that the FTC can fine brands $50,000 per incident when paid creator posts are not properly disclosed. The lawsuit seeks compensation for U.S. and Canadian customers who purchased Gymshark products after seeing allegedly undisclosed creator content.
THE BREAKDOWN
Disclosure is now a contract risk, not just a compliance reminder at the end of a brief. Agents should refuse brand language that discourages clear paid partnership labels or shifts all FTC exposure onto the creator. If a non-compete blocks competing recommendations, that restriction should be disclosed and paid like category exclusivity. Brand managers should audit old creator programs before plaintiffs' lawyers do it for them. Every deal should specify disclosure wording, platform placement and who approves compliance before posts go live.
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