Hawaii Contract between Television Advertising Production Company and Actor to do Infomercial

• Category: Contracts - Advertising
• State: Multi-State
• Control #: US-01834BG
• Format: Word

Description

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.

When it comes to creating an infomercial in Hawaii, a contract between the Television Advertising Production Company and the Actor is essential to ensure all parties are clear on their rights, obligations, and compensation. This detailed description will explore the elements typically found in such contracts, while incorporating relevant keywords. 1. Introduction: The contract should commence with an introduction that clearly identifies the contracting parties, namely the Television Advertising Production Company and the Actor involved in the infomercial production. 2. Project Description: Elaborate on the specific infomercial project, including the product or service being advertised, its features, benefits, and target audience. Incorporate keywords related to the product or service to optimize SEO, such as "beauty products," "health supplements," "kitchen appliances." 3. Roles and Responsibilities: Define the duties and responsibilities of both parties involved. Provide a detailed breakdown of the Actor's role, expected performance, and appearance requirements. Keywords may include "onscreen demonstrations," "spoken endorsements," "charismatic presentation." 4. Compensation: Outline the agreed-upon compensation structure for the Actor's involvement. This may include a combination of a fixed fee, royalties, bonuses, or a percentage of sales generated by the infomercial. Mention keywords like "financial terms," "payment schedule," "profit-sharing." 5. Exclusivity: If the Actor is required to provide exclusivity during the contract period, specify the scope and duration of this exclusivity. Keywords could comprise "non-compete clause," "exclusivity rights," "prohibited endorsements." 6. Intellectual Property: Address the ownership of intellectual property rights related to the infomercial. Specify whether the Actor will have any right to use the infomercial content for personal promotion or other purposes. Use keywords like "copyright," "trademark," "licensing." 7. Term and Termination: State the duration of the contract, specifying any renewal clauses or termination rights for both parties. Keywords may include "contract duration," "early termination," "notice period." 8. Confidentiality: Emphasize the need for confidentiality regarding the production details, concept, and any proprietary information. Incorporate keywords like "confidential clause," "trade secrets," "non-disclosure agreement." 9. Indemnification: Detail the responsibilities of both parties in terms of liabilities, damages, or legal actions. This includes indemnifying the Television Advertising Production Company against any claims arising from the Actor's actions or statements. Keywords could be "legal liabilities," "indemnification clause," "risk allocation." 10. Governing Law and Jurisdiction: Specify the governing law and court jurisdiction that will settle any dispute arising from the contract. Mention Hawaii as the applicable jurisdiction to reflect the location. Use keywords like "applicable law," "court jurisdiction," "dispute resolution." Types of Hawaii Contracts between Television Advertising Production Company and Actor: 1. Fixed-Fee Infomercial Contract: The Actor is paid a predetermined fixed amount for their involvement in the infomercial, regardless of the commercial's success. 2. Performance-Based Infomercial Contract: The Actor is compensated based on the number of infomercial sales or a percentage of the revenue generated. This type of contract may include additional bonuses for reaching specific sales milestones. 3. Royalty-Based Infomercial Contract: The Actor receives ongoing compensation in the form of royalties, calculated based on the sales or revenue generated from the infomercial. 4. Hybrid Infomercial Contract: A combination of the above contract types, tailored to suit the specific needs of the Television Advertising Production Company and the Actor involved. Creating a comprehensive and legally sound contract is crucial to protect both parties' interests and ensure a successful collaboration in producing an engaging and effective infomercial in Hawaii.