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.
Delaware is a state located in the Mid-Atlantic region of the United States. It is known for its favorable business laws and attracts many companies, including those in the television advertising production industry. When an advertising production company in Delaware plans to collaborate with an actor for an infomercial project, they typically enter into a contract to outline the terms and conditions of the partnership. Here are some types of Delaware contracts that may be established between a television advertising production company and an actor to do an infomercial: 1. Delaware Contract for Infomercial Services: This type of contract is used to formalize the agreement between the television advertising production company and the actor. It includes details about the scope of the infomercial project, the duration, the compensation structure, and the rights and responsibilities of both parties. 2. Delaware Appearance Release Agreement: An appearance release agreement is signed by the actor, giving the television advertising production company the right to use their image, voice, and likeness in the infomercial. This protects the company from any legal claims from the actor in the future and establishes clear permission for the usage of their persona. 3. Delaware Non-Disclosure Agreement (NDA): To maintain the confidentiality of sensitive information shared during the project, a non-disclosure agreement may be signed. This ensures that both parties involved will not disclose any proprietary or confidential information obtained during the production, such as script details, marketing strategies, or trade secrets. 4. Delaware Intellectual Property Assignment Agreement: This agreement is essential when the television advertising production company wants to own all rights to the infomercial content created. It transfers all intellectual property rights, such as copyright and trademarks, from the actor to the production company. This allows the company to use, distribute, and modify the infomercial without any restrictions. 5. Delaware Indemnity Agreement: To protect both parties from any legal issues that may arise during the production or as a result of the infomercial's release, an indemnity agreement can be established. This agreement ensures that each party will be held responsible for any claims, damages, or liabilities that may arise due to their respective actions or negligence. 6. Delaware Payment Terms Agreement: This agreement outlines the actor's compensation structure, including fees, royalties, or any other payment terms. It specifies the payment schedule, methods, and any additional compensation, such as residuals or incentives based on the infomercial's success. These are some types of contracts that may be used in Delaware between a television advertising production company and an actor to collaborate on an infomercial project. The specific contracts chosen will depend on the requirements, preferences, and negotiation between the parties involved.Delaware is a state located in the Mid-Atlantic region of the United States. It is known for its favorable business laws and attracts many companies, including those in the television advertising production industry. When an advertising production company in Delaware plans to collaborate with an actor for an infomercial project, they typically enter into a contract to outline the terms and conditions of the partnership. Here are some types of Delaware contracts that may be established between a television advertising production company and an actor to do an infomercial: 1. Delaware Contract for Infomercial Services: This type of contract is used to formalize the agreement between the television advertising production company and the actor. It includes details about the scope of the infomercial project, the duration, the compensation structure, and the rights and responsibilities of both parties. 2. Delaware Appearance Release Agreement: An appearance release agreement is signed by the actor, giving the television advertising production company the right to use their image, voice, and likeness in the infomercial. This protects the company from any legal claims from the actor in the future and establishes clear permission for the usage of their persona. 3. Delaware Non-Disclosure Agreement (NDA): To maintain the confidentiality of sensitive information shared during the project, a non-disclosure agreement may be signed. This ensures that both parties involved will not disclose any proprietary or confidential information obtained during the production, such as script details, marketing strategies, or trade secrets. 4. Delaware Intellectual Property Assignment Agreement: This agreement is essential when the television advertising production company wants to own all rights to the infomercial content created. It transfers all intellectual property rights, such as copyright and trademarks, from the actor to the production company. This allows the company to use, distribute, and modify the infomercial without any restrictions. 5. Delaware Indemnity Agreement: To protect both parties from any legal issues that may arise during the production or as a result of the infomercial's release, an indemnity agreement can be established. This agreement ensures that each party will be held responsible for any claims, damages, or liabilities that may arise due to their respective actions or negligence. 6. Delaware Payment Terms Agreement: This agreement outlines the actor's compensation structure, including fees, royalties, or any other payment terms. It specifies the payment schedule, methods, and any additional compensation, such as residuals or incentives based on the infomercial's success. These are some types of contracts that may be used in Delaware between a television advertising production company and an actor to collaborate on an infomercial project. The specific contracts chosen will depend on the requirements, preferences, and negotiation between the parties involved.
