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.
Title: Georgia Contract Between Television Advertising Production Company and Actor to Produce an Infomercial Introduction: In the state of Georgia, contracts play a crucial role in formalizing agreements and protecting the interests of both parties involved in a business collaboration. For the purpose of producing an infomercial, a specific contract is established between the Television Advertising Production Company and the Actor. This comprehensive document outlines the responsibilities, obligations, compensation, and other key terms related to the production and airing of the infomercial. In Georgia, there are mainly two types of contracts that are commonly utilized in these arrangements: the Standard Infomercial Contract and the Exclusive Infomercial Contract. 1. Standard Infomercial Contract: The Standard Infomercial Contract is a widely used agreement between the Television Advertising Production Company and the Actor. It establishes a mutually beneficial relationship to produce an infomercial, ensuring a fair and legally binding arrangement. This contract outlines the specifications of the production, distribution, airing rights, and the usage of the Actor's image. Key elements of this agreement typically include: a. Compensation: The contract specifies the Actor's remuneration, which may be a fixed amount, a percentage of sales, or a combination of both. b. Production Schedule: A detailed timeline is established, specifying dates for pre-production, shooting, post-production, and airing of the infomercial, ensuring clarity and accountability. c. Usage Rights: The contract outlines the extent to which the Actor's image can be used, including any limitations, duration, and specific media channels. d. Performance Obligations: The Actor's responsibilities, such as attending rehearsals, delivering lines accurately, and adhering to professional standards, are delineated to ensure a successful production. e. Termination: Terms related to contract termination due to unforeseen circumstances, non-performance, or breach of contract are included to protect both parties. 2. Exclusive Infomercial Contract: The Exclusive Infomercial Contract is a more specialized type of contract, often used when a Television Advertising Production Company desires exclusivity over the Actor's participation in similar infomercials. This contract grants the production company sole rights to engage the Actor for a specific period. Major components of this agreement may include: a. Exclusivity Clause: The contract limits the Actor's involvement in competing infomercials or related projects during the contractual period, ensuring that the Television Advertising Production Company has the sole right to exploit the Actor's talents. b. Extended Obligations: As exclusive representation, the Actor may be required to participate in promotional activities, media campaigns, and public appearances to further enhance the branding and reach of the infomercial. c. Compensation Structure: The remuneration structure may differ from the Standard Infomercial Contract, often including additional performance-based incentives or royalties based on successful sales conversions. d. Non-Disclosure Agreement: To protect any confidential information or trade secrets of the company, both parties are bound by a non-disclosure clause, ensuring that sensitive information remains secure. Conclusion: When embarking on a Television Advertising Production Company and Actor partnership to produce an infomercial in Georgia, contracts form the foundation of a successful working relationship. Whether utilizing a Standard Infomercial Contract or an Exclusive Infomercial Contract, these legal agreements protect the rights and obligations of both parties while clearly defining the terms and conditions for a fruitful collaboration.Title: Georgia Contract Between Television Advertising Production Company and Actor to Produce an Infomercial Introduction: In the state of Georgia, contracts play a crucial role in formalizing agreements and protecting the interests of both parties involved in a business collaboration. For the purpose of producing an infomercial, a specific contract is established between the Television Advertising Production Company and the Actor. This comprehensive document outlines the responsibilities, obligations, compensation, and other key terms related to the production and airing of the infomercial. In Georgia, there are mainly two types of contracts that are commonly utilized in these arrangements: the Standard Infomercial Contract and the Exclusive Infomercial Contract. 1. Standard Infomercial Contract: The Standard Infomercial Contract is a widely used agreement between the Television Advertising Production Company and the Actor. It establishes a mutually beneficial relationship to produce an infomercial, ensuring a fair and legally binding arrangement. This contract outlines the specifications of the production, distribution, airing rights, and the usage of the Actor's image. Key elements of this agreement typically include: a. Compensation: The contract specifies the Actor's remuneration, which may be a fixed amount, a percentage of sales, or a combination of both. b. Production Schedule: A detailed timeline is established, specifying dates for pre-production, shooting, post-production, and airing of the infomercial, ensuring clarity and accountability. c. Usage Rights: The contract outlines the extent to which the Actor's image can be used, including any limitations, duration, and specific media channels. d. Performance Obligations: The Actor's responsibilities, such as attending rehearsals, delivering lines accurately, and adhering to professional standards, are delineated to ensure a successful production. e. Termination: Terms related to contract termination due to unforeseen circumstances, non-performance, or breach of contract are included to protect both parties. 2. Exclusive Infomercial Contract: The Exclusive Infomercial Contract is a more specialized type of contract, often used when a Television Advertising Production Company desires exclusivity over the Actor's participation in similar infomercials. This contract grants the production company sole rights to engage the Actor for a specific period. Major components of this agreement may include: a. Exclusivity Clause: The contract limits the Actor's involvement in competing infomercials or related projects during the contractual period, ensuring that the Television Advertising Production Company has the sole right to exploit the Actor's talents. b. Extended Obligations: As exclusive representation, the Actor may be required to participate in promotional activities, media campaigns, and public appearances to further enhance the branding and reach of the infomercial. c. Compensation Structure: The remuneration structure may differ from the Standard Infomercial Contract, often including additional performance-based incentives or royalties based on successful sales conversions. d. Non-Disclosure Agreement: To protect any confidential information or trade secrets of the company, both parties are bound by a non-disclosure clause, ensuring that sensitive information remains secure. Conclusion: When embarking on a Television Advertising Production Company and Actor partnership to produce an infomercial in Georgia, contracts form the foundation of a successful working relationship. Whether utilizing a Standard Infomercial Contract or an Exclusive Infomercial Contract, these legal agreements protect the rights and obligations of both parties while clearly defining the terms and conditions for a fruitful collaboration.
