Influencer monetisation platform LTK has ended its legal battle with rival ShopMy.
LTK, formerly known as rewardStyle, had sued its competitor at the end of May, alleging ShopMy had engaged in false advertising, trademark infringement and unfair competition. A judge was assigned but there was little activity in the case until Aug. 26, when the lawsuit was dismissed without prejudice.
âShopMy ceased distribution of the false comparative advertisement, as well as the infringing use of the LTK mark and so LTK withdrew its complaint, and expressly reserves all its rights and remedies,â a spokesperson for LTK said in a statement.
âWe are pleased that this matter has been resolved,â a spokesperson for ShopMy said in a statement. âShopMy remains committed to innovation and providing the best possible platform for creators and brands to collaborate effectively. We look forward to continuing our focus on serving our community and advancing the creator economy.â
At the time of the filing, Emily Poler, founding partner at the law firm Poler Legal, who is not involved with the suit, said that it would be a âchallengeâ to prove the false advertising claims in court.
Because the suit was dismissed without prejudice, LTK is âkeeping the door openâ to revive the suit at a later date, Poler said this week, though she added that typically, these sorts of suits are not picked up again.
LTK, which was founded in 2011 as rewardStyle, has long dominated the influencer monetisation space, providing digital creators with affiliate links that allows them to monetise their content as well as orchestrating advertising deals between brands and influencers. However, after launching in 2020, competitor ShopMy quickly gained gaining popularity with influencers and brands alike. Brands said the platform offered more data transparency on influencer performance (even if it wasnât linked to a larger paid campaign), while influencers appreciated features like its âLookbooksâ and âOpportunitiesâ which allow brands to offer gifted product to influencers via the platform and pay them a set monthly fee for organic mentions on their channels, respectively.
Earlier this month, LTK rolled out several new features similar to those available on ShopMy. Its new LTK Leaderboard dashboard will provide details on the âsales, LTK posts, traffic, conversions, conversion rate, average order value and net commission, as well as organic traffic from across every social channel,â an influencer is driving for a particular brand, according to a company statement, even if they are not already running a paid partnership with them. It also introduced a âPower Giftingâ programme that allows brands to directly connect with influencers to offer them product or a discount code to share with their followers.
Learn more:
The Fight for Influencer Marketing Dollars Heats Up
ShopMy, a four-year-old influencer monetisation platform, has attracted over 50,000 creators, making inroads in a space long ruled by incumbent player LTK. Tensions rose to new heights this week after LTK sued ShopMy for false advertising.
