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.
Iowa Contract between Television Advertising Production Company and Actor to do Infomercial An Iowa contract between a television advertising production company and an actor for the purpose of producing an infomercial is a legally binding agreement that outlines the terms and conditions of their professional relationship. This contract serves to protect the interests of both parties involved and ensures a smooth production process. Here is a detailed description of what this type of contract entails: 1. Parties Involved: The contract clearly identifies the two parties involved: — Television Advertising Production Company: The entity responsible for producing the infomercial. This can be a production company or an advertising agency based in Iowa. — Actor: The individual hireperformingrm in the infomercial. The actor should be named and described in detail, including their contact information, stage name (if applicable), and any specific requirements or qualifications. 2. Scope of Work: The contract specifies the details of the infomercial project, including the product or service being advertised, the intended target audience, and the overall purpose of the infomercial. It should also outline the specific role and responsibilities of the actor, such as on-camera performance, script delivery, and any additional tasks required. 3. Compensation: This section outlines the financial aspect of the agreement, including the actor's compensation for their services. It may include details about: — Payment Method: Whether the actor will be paid a fixed amount, hourly rate, or receive a percentage of the infomercial's profits. — Payment Schedule: The frequency and deadlines for payments, ensuring clarity on when the actor can expect to receive compensation. — Reimbursement: Any additional expenses the actor may incur during production, such as travel or accommodation costs, which may be reimbursed by the production company. 4. Production and Scheduling: This section of the contract covers the key details related to the production process: — Shooting Schedule: The dates, times, and locations for filming the infomercial. This enables both parties to plan their availability accordingly. — Production Timeline: An outline of the entire production process, including pre-production, filming, post-production, and final delivery of the infomercial. — Modifications and Delays: Any provisions for changes to the shooting schedule or production timeline must be addressed, including how additional costs or delays may be handled. 5. Intellectual Property: This clause outlines the ownership and usage rights of the final infomercial product. It clearly states that the production company holds the copyright to the advertisement, ensuring that the actor cannot use it for personal gain without prior consent. It may also include provisions for confidentiality and non-disclosure to protect proprietary information. 6. Termination: Details pertaining to contract termination, such as the circumstances under which either party may end the agreement, the notice period required, and any potential penalties or liabilities associated with termination, must be addressed for clarity and protection. Types of Iowa Contracts between Television Advertising Production Company and Actor to do Infomercial: — Fixed Compensation Contract: This type of contract involves the actor receiving a predetermined fixed amount for their services, regardless of the infomercial's success or profits. — Profit-Sharing Contract: In this arrangement, the actor receives a percentage of the infomercial's profits as their compensation. This encourages the actor to contribute to the success of the advertisement. — Royalty-Based Contract: This type of contract grants the actor continuous compensation through royalties based on the infomercial's ongoing success, such as through sales or license agreements. In conclusion, an Iowa contract between a television advertising production company and an actor to produce an infomercial is a comprehensive agreement that ensures a smooth and mutually beneficial working relationship. By covering all essential aspects mentioned above, this contract protects the interests of both parties and enables the successful creation and distribution of a compelling infomercial.
