In 2009, the Federal Trade Commission made several changes to the FTCs Guides Concerning the Use of Endorsements and Testimonials in Advertising, which address endorsements by consumers, experts, organizations, and celebrities, as well as the disclosure of important connections between advertisers and endorsers. The Guides were last updated in 1980.
Celebrity endorsers are addressed in the revised Guides. While the 1980 Guides did not explicitly state that endorsers as well as advertisers could be liable under the FTC Act for statements they make in an endorsement, the revised Guides reflect Commission case law and clearly state that both advertisers and endorsers may be liable for false or unsubstantiated claims made in an endorsement or for failure to disclose material connections between the advertiser and endorsers. The revised Guides also make it clear that celebrities have a duty to disclose their relationships with advertisers when making endorsements outside the context of traditional ads, such as on talk shows or in social media. Note Section XI of this form.
The term Infomercial refers to an information commercial (usually 15 to 30 minutes long) that is presented more like a talk show than a commercial promotion. Infomercials are aired normally at fringe times (late night to early morning), and aim at building awareness of a product or service by demonstrating its use and benefits. Typically, they include an attractive direct response offer (with toll-free numbers) designed to elicit on-the-spot orders.
A California Contract between a Television Advertising Production Company and an Actor to do an Infomercial is a legally binding document that establishes the terms and conditions of their professional engagement. This agreement outlines the specific expectations, rights, and responsibilities of both parties involved in the production of an infomercial in California. Here is a detailed description of the key components typically included in such a contract: 1. Parties Involved: Identify the Television Advertising Production Company (Producer) and the Actor (Talent) participating in the infomercial. Provide their legal names, addresses, and contact details. 2. Purpose: Clearly state that the purpose of the contract is to engage the Actor's services for the production of an infomercial. Specify the specific product or service being promoted in the infomercial. 3. Term: Define the duration of the agreement. Specify the exact start and end dates of the project or establish a reasonable timeframe in which the services will be rendered. 4. Compensation: Detail the financial arrangement for the Actor's services. Specify the actor's fee (either a fixed compensation or based on a negotiated rate per shooting day or per episode), and outline any additional compensation, such as residuals or royalties, if applicable. Include information about any reimbursement for travel or other expenses incurred during the production phase. 5. Intellectual Property: Establish ownership rights and usage permissions for the infomercial. Clarify that the Producer shall have full and exclusive rights to the infomercial, including the footage, photographs, audio, logos, and trademarks, and that the Actor shall not enter any agreements that conflict with these rights. 6. Talent Release: Outline that the Actor gives the Producer the right to use their image, name, voice, likeness, and performance in the infomercial and any related marketing materials. Ensure that the Actor agrees not to claim any copyright or trademark infringement regarding their portrayal in the infomercial. 7. Non-Disclosure Agreement (NDA): Establish confidentiality provisions to protect sensitive and proprietary information disclosed during the project. Specify that both parties shall keep all trade secrets, financial data, and other confidential information confidential before, during, and after the completion of the infomercial. 8. Termination Clause: Establish the conditions under which either party can terminate the agreement. Include provisions for a notice period or specific circumstances that may lead to immediate termination, such as breach of contract, misconduct, or non-performance. 9. Representations and Warranties: Ensure that the Actor confirms they have the legal right to enter into this agreement and provide services. Consider including statements regarding the Actor's status as an independent contractor and affirming that they are not subject to any other exclusive and conflicting agreements. 10. Governing Law and Jurisdiction: Specify that the contract shall be governed by the laws of the State of California, and any disputes arising from it shall be resolved in a specific California court or through arbitration, if desired. Different types of California Contracts between Television Advertising Production Company and Actor to do Infomercial may include variations based on the scope of work, compensation structure, or the level of exclusivity granted to the Actor. Additional clauses may be added to address specific scenarios, such as dispute resolution mechanisms, liability limitations, and contingency plans in case of force majeure events. Overall, the content of the contract should be tailored to the specific needs and objectives of both the Television Advertising Production Company and the Actor, ensuring a fair and mutually beneficial relationship during the production of the infomercial.A California Contract between a Television Advertising Production Company and an Actor to do an Infomercial is a legally binding document that establishes the terms and conditions of their professional engagement. This agreement outlines the specific expectations, rights, and responsibilities of both parties involved in the production of an infomercial in California. Here is a detailed description of the key components typically included in such a contract: 1. Parties Involved: Identify the Television Advertising Production Company (Producer) and the Actor (Talent) participating in the infomercial. Provide their legal names, addresses, and contact details. 2. Purpose: Clearly state that the purpose of the contract is to engage the Actor's services for the production of an infomercial. Specify the specific product or service being promoted in the infomercial. 3. Term: Define the duration of the agreement. Specify the exact start and end dates of the project or establish a reasonable timeframe in which the services will be rendered. 4. Compensation: Detail the financial arrangement for the Actor's services. Specify the actor's fee (either a fixed compensation or based on a negotiated rate per shooting day or per episode), and outline any additional compensation, such as residuals or royalties, if applicable. Include information about any reimbursement for travel or other expenses incurred during the production phase. 5. Intellectual Property: Establish ownership rights and usage permissions for the infomercial. Clarify that the Producer shall have full and exclusive rights to the infomercial, including the footage, photographs, audio, logos, and trademarks, and that the Actor shall not enter any agreements that conflict with these rights. 6. Talent Release: Outline that the Actor gives the Producer the right to use their image, name, voice, likeness, and performance in the infomercial and any related marketing materials. Ensure that the Actor agrees not to claim any copyright or trademark infringement regarding their portrayal in the infomercial. 7. Non-Disclosure Agreement (NDA): Establish confidentiality provisions to protect sensitive and proprietary information disclosed during the project. Specify that both parties shall keep all trade secrets, financial data, and other confidential information confidential before, during, and after the completion of the infomercial. 8. Termination Clause: Establish the conditions under which either party can terminate the agreement. Include provisions for a notice period or specific circumstances that may lead to immediate termination, such as breach of contract, misconduct, or non-performance. 9. Representations and Warranties: Ensure that the Actor confirms they have the legal right to enter into this agreement and provide services. Consider including statements regarding the Actor's status as an independent contractor and affirming that they are not subject to any other exclusive and conflicting agreements. 10. Governing Law and Jurisdiction: Specify that the contract shall be governed by the laws of the State of California, and any disputes arising from it shall be resolved in a specific California court or through arbitration, if desired. Different types of California Contracts between Television Advertising Production Company and Actor to do Infomercial may include variations based on the scope of work, compensation structure, or the level of exclusivity granted to the Actor. Additional clauses may be added to address specific scenarios, such as dispute resolution mechanisms, liability limitations, and contingency plans in case of force majeure events. Overall, the content of the contract should be tailored to the specific needs and objectives of both the Television Advertising Production Company and the Actor, ensuring a fair and mutually beneficial relationship during the production of the infomercial.
