Styled by Morality: The Legal Implications of Celebrity Conduct

In recent years, shifting societal norms have highlighted the importance of morality clauses in the business world, especially in the fashion industry, where the use of celebrity and influencer endorsements have become the primary marketing strategy.[1] These partnerships often make the celebrities and influencers the public faces of the brand, which means one misstep by the endorser can significantly harm the company’s reputation.[2] For this reason, brands utilize morality clauses, which are contractual provisions that obligate parties to adhere to specific standards of conduct.[3]

From Michael Jordan’s partnership with Nike, to Natalie Portman’s Christian Dior campaign, many endorsers become intertwined with the identity of the brands they represent.[4] With the rise of social media, public figures’ actions are instantly broadcast to the world, making any missteps by endorsers rapidly widespread and increasing the damage to both the endorser and the affiliated company.[5] For instance, Ye West (formerly Kanye West) had partnerships with notable fashion brands like Adidas and Balenciaga.[6] However, in 2022, after West made several public anti-Semitic remarks, several of these brands terminated their relationship with the artist, citing a breach of the morality clause in West’s contract.[7] Specifically, West’s remarks and views did not align with those of the companies he represented and could damage the reputation of those companies.[8] Similarly, in 2005, H&M, Chanel and Burberry terminated their contracts with supermodel Kate Moss after she was photographed allegedly using cocaine.[9] H&M, in particular, invoked its morality clause within Moss’s contract, which required the model to maintain a certain level of public decorum.[10] In contrast, amidst the abuse allegations against actor Johnny Depp, Dior maintained its partnership with Depp despite companies such as Warner Bros. Pictures and Disney severing their ties with the star.[11]

These inconsistent responses raise questions about what exactly triggers a morality clause. Traditionally, these clauses were only invoked if the endorser faced criminal charges.[12] However, in the age of social media, morality clauses have been triggered by controversial behavior, public statements, and even mere allegations of such behavior.[13] Public perception has been more powerful than ever, and if an endorser’s public image suffers, the company’s image likely will too.[14] As a result, when drafting morality clauses, brands must consider whether to invoke the clause due to an endorser’s controversial past actions or weather the storm of public backlash that could come with standing by the endorser.[15]

Ultimately, brands must protect their image and have the right to safeguard themselves from potential liability caused by an endorser’s actions.[16] In exchange for compliance with the rules set forth by their partner companies, endorsers receive a substantial paycheck and a significant boost in their notoriety.[17] With social media’s permanence allowing past actions to be scrutinized more thoroughly than ever, the importance of morality clauses has only grown.[18] As societal standards evolve, morality clauses will likely become more detailed and stringent.[19] These changes, coupled with the increasing need to regularly update morality clauses, allow brands to swiftly address controversies and align with evolving public expectations.[20]

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[1] See Shivangi Desai, Legal Implications of Endorsement by Celebs and Influencers, Fashion & Law Journal (Nov. 18, 2022), https://fashionlawjournal.com/legal-implications-of-endorsement-by-celebs-and-influencers/.

[2] See id.

[3] See Julia Kappler, Sébastien Gardère & Kathryn Chadwick, Morality Clauses in the Era of Social Media Scandals—What Brands Should Know, Gowling WLG (Jan. 13, 2022), https://gowlingwlg.com/en/insights-resources/articles/2022/morality-clauses-in-era-of-social-media-scandals?utm_source=mondaq&utm_medium=syndication&utm_content=articleoriginal&utm_campaign=article.

[4] See Trinetra Paul, 13 of the Most Expensive Celebrity Endorsements in History, Prestige (June 15, 2023, 11:00 PM), https://www.prestigeonline.com/th/lifestyle/culture-plus-entertainment/most-expensive-endorsement-deals/.

[5] See Kappler, supra note 3.

[6] See Evan Nicole Brown, Why Kanye West Being Dropped by Business Partners Isn’t That Simple, The Hollywood Reporter (Oct. 29, 2022, 7:00 AM), https://www.hollywoodreporter.com/lifestyle/lifestyle-news/kanye-west-dropped-adidas-gap-legal-issues-1235250483/.

[7] See id.

[8] See id.

[9] See Jonathan Lurie, Sidestepping Scandals: The Value of Morality Clauses, LegalMatch: Business Law (June 21, 2016), https://legalmatch.typepad.com/businesslaw/2016/06/sidestepping-scandals-the-value-of-morality-clauses.html.

[10] See id.

[11] See id.

[12] See Kappler, supra note 3.

[13] See id.

[14] See id.

[15] See id.

[16] See Bryan Sullivan, Morals Clauses and the First Amendment in the Social Media Age: Freedom of Speech Does Not Mean Freedom from Consequences, Forbes (June 22, 2020, 3:07 PM), https://www.forbes.com/sites/legalentertainment/2020/06/22/morals-clauses-and-the-first-amendment-in-the-social-media-age-freedom-of-speech-does-not-mean-freedom-from-consequences/.

[17] See Trinetra, supra note 4.

[18] See Kappler, supra note 3.

[19] See id.

[20] See id.