TikTok Ban Looms: Creators Adjust Contracts to Mitigate Risk

The impending TikTok ban in the United States casts a long shadow over the creator economy. As the January 19th deadline approaches, the platform's future uncertainty prompts creators to reassess their brand partnership strategies.

Read the full article at Digiday - and please be aware that this post provides general information and should not be considered legal or financial advice.

TikTok creators are changing their approach to brand partnership contracts.

Force Majeure Concerns

A key area of concern for creators is the "force majeure" clause, a standard provision in many contracts that typically requires creators to keep sponsored content on their platforms for a specified period.

However, with the potential for a complete TikTok ban, adhering to this clause could leave creators vulnerable.

• Shifting the Narrative: To mitigate this risk, many creators are now negotiating to remove or modify force majeure clauses, recognizing that they have no control over the platform's availability.

• Alternative Posting Plans: Proactive creators are also incorporating alternative posting plans into their contracts. This allows them to fulfil their obligations by sharing sponsored content on other platforms, such as Instagram or YouTube, in the event of a TikTok ban.

Impact on Brand Partnerships

The looming ban has already impacted brand confidence. Some advertisers have slowed their TikTok spending, making it a more challenging platform for creators to secure lucrative deals.

• Agency Adjustments: Agencies like Ghost Agency are proactively addressing the situation. They advise clients to explore alternative platforms and even include contingency plans in their contracts, ensuring flexibility in the face of potential disruptions.

The Essence

The TikTok ban has forced creators to become more strategic and adaptable.

By carefully reviewing and negotiating their contracts, they can minimize risks and ensure their businesses thrive amidst uncertainty.

As the situation evolves, creators must stay informed and adjust their approach accordingly to navigate the changing landscape of social media.

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