Andrew Lustigman Quoted in AdAge on the Advertisement Agreements Between TikTok and Brands

Andrew Lustigman, head of Olshan’s Advertising, Marketing & Promotions Practice Group, was quoted in AdAge (subscription required) regarding the impending ban that may happen to TikTok and how it would affect the brands that use the platform to publish its advertisements. Due to the recent controversy surrounding the potential ban of the app, some brands that utilize the platform are working to prepare for the worst. There are many complications that may arise if the app is banned and brand partnerships were to end abruptly.  However, TikTok is not only ensuring that the brands they work with are protected they are also making sure their protection is ensured as well, within the clauses of their contracts. “The clause could give TikTok some coverage from brands claiming, ‘consequential damages’,” Mr. Lustigman said. This action isn’t rare especially during the COVID-19 pandemic which he continued to explain, “It is common, particularly in the COVID age, for agreements to contain a force majure provision,” Lustigman says, “meaning that party’s conduct is excused if it is impossible to perform. Such a provision should likely apply if it is illegal for TikTok to perform in the U.S., and if so, there should be no liability to the platform for failure to post advertising.”