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.
In Indiana, the contract between a Television Advertising Production Company and an Actor to do an infomercial is a vital agreement that outlines the specific terms and conditions governing their working relationship. This contract serves as a legal document ensuring all parties are aligned in their expectations and responsibilities. Several types of contracts can be used in Indiana for these purposes, including: 1. Standard Contract: This is the most common type of contract used between a Television Advertising Production Company and an Actor to create an infomercial. It covers essential aspects such as compensation, duration of the project, intellectual property rights, exclusivity, and any additional requirements from either party. 2. Talent Release Agreement: A Talent Release Agreement grants the Television Advertising Production Company the right to use the actor's name, likeness, voice, and appearance for promotional and advertising purposes related to the infomercial. This contract also clarifies any limitations to the usage of the actor's image and ensures the actor's consent is obtained accordingly. 3. Non-Disclosure Agreement: A Non-Disclosure Agreement (NDA) is crucial for an infomercial project, especially when confidential or proprietary information is shared between the Television Advertising Production Company and the Actor. This contract ensures that sensitive information, such as trade secrets or unreleased products, remains confidential and prohibits the Actor from sharing or using it for personal gain. 4. Work-for-Hire Agreement: A Work-for-Hire Agreement is often used when the Television Advertising Production Company intends to hold complete ownership of the infomercial content created by the Actor. This contract establishes that the Actor is acting as an employee or independent contractor of the company, and all rights to the created work belong to the company. The detailed description of an Indiana Contract between a Television Advertising Production Company and an Actor to do an infomercial should include the following relevant keywords: — Compensation: This section specifies the payment terms, including the actor's fee, method of payment, and any additional compensation such as royalties or residuals. — Project Scope: Describes the nature of the infomercial, its intended audience, and any specific requirements or expectations from the actor. — Duration: Outlines the start and end dates of the project, including any additional time for rehearsals, reshoots, or post-production activities. — Intellectual Property Rights: Defines who will own the copyright and other intellectual property rights related to the infomercial content. It may specify whether the actor retains any rights or if they are assigned entirely to the Television Advertising Production Company. — Exclusivity and Non-Compete Clause: Specifies whether the actor is allowed to participate in similar projects or endorse competing products during the project's duration or a specific post-production period. — Termination Clause: Outlines the conditions under which either party can terminate the contract, including breach of terms, event cancellation, or project discontinuation. — Confidentiality: Establishes obligations for both parties to keep confidential information discussed during the project confidential and may include any penalties for breaching this obligation. — Indemnification: Determines who will be responsible for any legal claims, damages, or liabilities that may arise during the production or use of the infomercial. — Governing Law and Jurisdiction: Specifies that the contract will be governed by and interpreted under Indiana law, and any legal disputes will be resolved in Indiana courts. Remember, it's essential for both the Television Advertising Production Company and the Actor to consult with legal professionals to ensure that the contract complies with Indiana laws and protects their respective rights and interests.In Indiana, the contract between a Television Advertising Production Company and an Actor to do an infomercial is a vital agreement that outlines the specific terms and conditions governing their working relationship. This contract serves as a legal document ensuring all parties are aligned in their expectations and responsibilities. Several types of contracts can be used in Indiana for these purposes, including: 1. Standard Contract: This is the most common type of contract used between a Television Advertising Production Company and an Actor to create an infomercial. It covers essential aspects such as compensation, duration of the project, intellectual property rights, exclusivity, and any additional requirements from either party. 2. Talent Release Agreement: A Talent Release Agreement grants the Television Advertising Production Company the right to use the actor's name, likeness, voice, and appearance for promotional and advertising purposes related to the infomercial. This contract also clarifies any limitations to the usage of the actor's image and ensures the actor's consent is obtained accordingly. 3. Non-Disclosure Agreement: A Non-Disclosure Agreement (NDA) is crucial for an infomercial project, especially when confidential or proprietary information is shared between the Television Advertising Production Company and the Actor. This contract ensures that sensitive information, such as trade secrets or unreleased products, remains confidential and prohibits the Actor from sharing or using it for personal gain. 4. Work-for-Hire Agreement: A Work-for-Hire Agreement is often used when the Television Advertising Production Company intends to hold complete ownership of the infomercial content created by the Actor. This contract establishes that the Actor is acting as an employee or independent contractor of the company, and all rights to the created work belong to the company. The detailed description of an Indiana Contract between a Television Advertising Production Company and an Actor to do an infomercial should include the following relevant keywords: — Compensation: This section specifies the payment terms, including the actor's fee, method of payment, and any additional compensation such as royalties or residuals. — Project Scope: Describes the nature of the infomercial, its intended audience, and any specific requirements or expectations from the actor. — Duration: Outlines the start and end dates of the project, including any additional time for rehearsals, reshoots, or post-production activities. — Intellectual Property Rights: Defines who will own the copyright and other intellectual property rights related to the infomercial content. It may specify whether the actor retains any rights or if they are assigned entirely to the Television Advertising Production Company. — Exclusivity and Non-Compete Clause: Specifies whether the actor is allowed to participate in similar projects or endorse competing products during the project's duration or a specific post-production period. — Termination Clause: Outlines the conditions under which either party can terminate the contract, including breach of terms, event cancellation, or project discontinuation. — Confidentiality: Establishes obligations for both parties to keep confidential information discussed during the project confidential and may include any penalties for breaching this obligation. — Indemnification: Determines who will be responsible for any legal claims, damages, or liabilities that may arise during the production or use of the infomercial. — Governing Law and Jurisdiction: Specifies that the contract will be governed by and interpreted under Indiana law, and any legal disputes will be resolved in Indiana courts. Remember, it's essential for both the Television Advertising Production Company and the Actor to consult with legal professionals to ensure that the contract complies with Indiana laws and protects their respective rights and interests.
