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.
Description: A Guam Contract between a Television Advertising Production Company and an Actor to do an Infomercial is a legally binding agreement that outlines the terms and conditions governing the partnership between the production company and the actor for the creation and broadcasting of an infomercial advertisement. This type of contract ensures that both parties understand their rights, responsibilities, and expectations, thus establishing a solid working relationship. Keywords: — GuaContractac— - Television Advertising Production Company Actto— - Infomercial Types of Guam Contracts between Television Advertising Production Company and Actor to do Infomercial: 1. General Guam Contract: This type of contract serves as a comprehensive agreement that covers all the essential elements necessary for the production and airing of an infomercial. It outlines payment terms, production schedule, intellectual property rights, release forms, and any other relevant provisions. 2. Exclusive Performance Contract: An exclusive performance contract is tailored for actors who commit exclusively to working with a specific television advertising production company for a specific period. This contract restricts the actor from participating in any similar infomercial projects from competitors during the contract's duration. 3. Non-Compete Agreement: A non-compete agreement is a separate document that can be incorporated into the Guam Contract. It prevents the actor from engaging in similar infomercial projects with competitors or participating in activities that could harm the production company's interests during the contract term. 4. Licensing Agreement: In certain situations, an actor may hold ownership or licensing rights to a product or service that they wish to promote in the infomercial. A licensing agreement specifies the terms under which the actor grants the television advertising production company the right to use their intellectual property in the infomercial. 5. Indemnification Agreement: An indemnification agreement protects the television advertising production company from any claims, liabilities, or legal actions that may arise as a result of the actor's actions or representations during the infomercial production or airing. In conclusion, a Guam Contract between a Television Advertising Production Company and an Actor to do an Infomercial is a vital tool for establishing a mutually beneficial partnership. By clearly laying out the rights and obligations of both parties, these contracts ensure a successful and harmonious production process.
