Bar and restaurant owners need to be vigilant and wear a lot of hats every single day. While they may be experts at running back- and front-of-house operations, they may not be up to date on the changing laws or even the trending lawsuits that can affect their businesses.
One current trend taking place on a national scale is plaintiff attorneys bringing lawsuits on a class or mass-claim basis against establishments, claiming “damage” to individuals beyond just celebrities. The cases focus on right of publicity, false endorsement, advertising and copyright infringement. These lawsuits are claiming unauthorized photo usage, for example regarding a photo featured on an establishment’s website or posted on its social media platforms.
The attorneys are suing because there is no clear permission given and they are stating that the use of certain photos or images caused damage to an individual’s reputation. These lawyers are using AI-driven search and scraping tools to scan for potentially unauthorized image use and then sue multiple establishments at once. They are casting a wide net with hopes to catch a few with this tactic that they can get a settlement from.
It can be extremely expensive for bar and restaurant owners to defend themselves in small image-use or publicity disputes, even if the damages are modest and the establishment settles out. The result of a settlement can be $5,000 to $10,000 that the establishment has to pay out of pocket for defense costs and settlement payments.
When sourcing imagery for their websites, social media platforms or other promotional usage, bar and restaurant owners need to make sure they have proper consent or utilize licensed stock photo services. That’s why it can be beneficial to hire a credible marketing and social media professional. These individuals will be equipped with the knowledge, the tools and the resources to ensure the right kind of consent for public usage when it comes to imagery.
This can serve as a safety net for the establishment, and one less thing for owners to have to worry about while trying to operate their businesses. Sometimes outsourcing can be one of the best business decisions a bar and restaurant owner can make.
David DeLorenzo is highly knowledgeable on the intricacies of bar and restaurant insurance as he has spent more than two decades in the hospitality industry. In that time, he has built his well-earned reputation as the connector and protector of industry personnel. As the owner and operator of Bar and Restaurant Insurance, he helps clients get the proper insurance coverage for their businesses while guiding them through complex world of insurance policies.
