The information in this blog is for general informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice on your specific situation. We make no guarantees about the accuracy or completeness of the information provided. Reliance on any information in this blog is at your own risk.
Influencer marketing has matured into a sophisticated ecosystem—campaign briefs, detailed metrics, and multi-year brand-ambassador agreements. Yet payment disputes still plague the industry. Whether you are a nano-creator in Ottawa or a Twitch powerhouse in Toronto, an unpaid sponsorship invoice can derail cash flow and damage your growth. Fortunately, Ontario law offers practical tools to compel payment or recover damages. Below is a step-by-step legal roadmap for creators, talent managers, and small agencies when a brand—or its agency—ghosts the invoice.
1. Double-Check the Contract and Scope of Work
Before firing off angry emails, confirm that you delivered every contractual deliverable:
- Post and platform count – Did you publish the exact number of stories, reels, or tweets?
– - Hashtags and tags – Brands often condition payment on specific tags (#ad, #sponsored, brand handle).
– - Timing – A missed “go-live” date may give the brand leverage to delay or withhold payment.
– - Metrics – Review whether you owe post-campaign analytics within a specified time.
If you discover a shortfall, fix it immediately and document compliance. Removing excuses strengthens your leverage.
2. Issue a Formal Payment Reminder
Send a concise, professional email—often called a “soft reminder.” Attach:
- The original signed agreement or insertion order
- Your invoice (include HST number if you have one)
- A summary of completed deliverables and hyperlinks to live content
Set a clear deadline, typically seven days, for payment or written confirmation of the payment schedule.
3. Escalate With a Demand Letter
If the brand remains silent, a lawyer-drafted demand letter on firm letterhead is the next escalation. The letter should:
- Reference the contract clause obligating payment
– - Itemise the outstanding amount, including HST and any late fees specified in the agreement
– - Cite Ontario’s Interest Act and the default prejudgment interest rate (2% above Bank of Canada rate)
– - Provide a firm payment deadline (10–14 days)
– - Warn of legal action and cost recovery, including small-claims or Superior Court fees
Most reputable brands pay upon receiving a well-structured demand letter to avoid litigation costs and public relations fallout.
4. Evaluate Alternative Dispute-Resolution Clauses
Review your agreement for:
- Mandatory mediation – Some contracts require a good-faith mediation session before court.
– - Arbitration clauses – Ontario’s Arbitration Act, 1991 enforces valid arbitration agreements, which may limit your ability to sue in court.
– - Choice of law and forum – U.S. templates often select New York or California law; Ontario influencers should negotiate local jurisdiction to reduce expense.
Follow any contractual pre-litigation steps to preserve your claim and avoid procedural dismissals.
5. Choose the Right Court or Tribunal
Small Claims Court (Ontario)
- Jurisdiction up to $35,000 (exclusive of interest and costs and subject to change on July 1, 2025)
– - Streamlined process; parties may self-represent
– - Typical timeline: six to twelve months from filing to judgment
Ontario Superior Court of Justice
- Claims over $35,000 (subject to change on July 1, 2025)
– - Formal pleading and discovery phases; legal counsel recommended
– - Higher cost, but awards include legal fees proportionate to the amount recovered
Online Dispute Resolution (ODR) Platforms
Some agencies subscribe to settlement platforms endorsed by the Interactive Advertising Bureau. While faster, participation is voluntary; a court order ultimately carries more enforcement power.
6. Gather Evidence for Litigation
Compile a dossier:
- Executed agreement and any amendments
– - Invoices and payment reminders with timestamps
– - Screenshots or screen recordings of published content (include URLs and publication dates)
– - Engagement metrics—reach, clicks, conversions—as proof of performance
– - Communications—emails, DMs, Slack logs—showing brand approval and campaign sign-off
Properly organised evidence shortens litigation and increases settlement pressure.
7. Consider Statutory and Contractual Interest
Ontario’s Courts of Justice Act allows prejudgment interest on contract debts at the Bank of Canada rate plus 2%. If your contract specifies a higher late fee—or daily interest—ensure it complies with the Interest Act (no criminal-rate interest). Itemise interest in your claim to capture the full debt.
8. Weigh Reputational Remedies
While defamation laws forbid false statements, truthful public disclosure of non-payment can motivate brands. However:
- Publish only verifiable facts: amount owed, contract date, payment due date.
– - Avoid disparaging language that implies brand insolvency or wrongdoing beyond the debt.
– - Consult counsel before posting; missteps can invite counter-claims for defamation or breach of confidentiality.
A tactful tweet or LinkedIn post often prompts swift action, but legal advice ensures you stay on safe ground.
9. Secure Judgment and Enforce
If you obtain a court judgment and the brand still refuses to pay:
- File a Writ of Seizure and Sale with the sheriff to garnish bank accounts or seize assets.
– - Garnish accounts receivable by serving notices on the brand’s clients who owe it money.
– - “Fair use” declaration doesn’t stop initial blocking.
Enforcement tools vary; a lawyer can tailor strategy to the debtor’s profile and asset footprint.
10. Prevent Future Non-Payment
- Upfront deposits – Secure 50% on signing, 50% on deliverable approval.
– - Escrow services – Use platforms that hold funds until posts go live.
– - Late-fee clauses – 1.5% per month (18% per annum) incentivises prompt payment.
– - Net-30 or better terms – Avoid vague “payment upon receipt” language.
– - Jurisdiction clause – Stipulate Ontario courts to minimise cross-border enforcement headaches.
Conclusion
Chasing unpaid sponsorship fees can feel daunting, but Ontario’s legal framework—and strategic contract drafting—gives influencers and small agencies robust tools to secure payment. Start with clear agreements, document performance, escalate through formal demand letters, and, if necessary, leverage the efficiency of Small Claims Court or negotiated settlements. Proactivity at the contract stage and decisive action when payment falters protect both your revenue and your professional brand.
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Contact us today for a consultation if you’re facing non-payment or want bullet-proof influencer contracts. Our team will guide you from demand letter to judgment, ensuring your creative work earns every dollar you deserve.
Frequently Asked Questions (FAQs)
- What should I do first if a brand doesn’t pay me?
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Start by reviewing your contract to ensure you fulfilled all deliverables as agreed. Then issue a professional payment reminder attaching your contract, invoice, links to delivered posts, and a clear payment deadline.
– - Do I need a lawyer to send a demand letter?
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While you can send a payment reminder yourself, a demand letter from a lawyer typically carries more weight. It signals legal readiness and often prompts faster resolution without formal litigation.
– - Can I go public on social media about non-payment?
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You can factually state that a payment is outstanding, but avoid making defamatory statements or implying wrongdoing beyond the unpaid debt. Always consult legal counsel before making public statements.
– - What court should I use to sue in Ontario?
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For amounts up to $35,000, Ontario Small Claims Court is faster, more affordable, and allows self-representation. For larger amounts, you would proceed in the Ontario Superior Court of Justice.
– - Can I add interest or late fees to my claim?
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Yes. Ontario’s Courts of Justice Act allows you to claim prejudgment interest (Bank of Canada rate + 2%). If your contract specifies late fees, ensure they comply with the Interest Act and are clearly documented in your claim.