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.
A Maine Contract between a Television Advertising Production Company and an Actor to do an Infomercial outlines the terms and conditions agreed upon by both parties for the creation and usage of television commercials or infomercials featuring the actor. This legally binding agreement ensures that both the company and the actor understand their rights and obligations throughout the entire production process. The contract typically includes the following key sections: 1. Parties involved: Clearly state the names and contact information of the television advertising production company and the actor. 2. Purpose of the contract: Explain that the purpose of this agreement is to engage the actor's services for the production and distribution of infomercials, including both the televised commercials and any related promotional materials. 3. Scope of work: Describe the specific roles and responsibilities of the actor, including the style, content, and duration of the infomercial. Any additional obligations, such as attending promotional events or participating in interviews, should also be outlined. 4. Compensation: State the agreed-upon payment terms, including the actor's fee, any additional expenses that will be reimbursed, and the schedule of payment (e.g., upfront, on completion, or in installments). 5. Ownership and usage rights: Specify the ownership of the commercial's intellectual property rights, such as copyrights or trademarks. Detail the extent of the actor's usage rights, whether it is limited to the agreed upon infomercial or allows for additional usage in related campaigns or mediums. 6. Confidentiality: Include a section that emphasizes the confidentiality of any proprietary information shared between the parties during the course of the project, ensuring that trade secrets or unreleased content are protected. 7. Term and termination: Define the period of the agreement, including any options for renewal or termination, and the notice period required to terminate the contract by either party. 8. Representations and warranties: Ensure that the actor represents that they have the legal capacity to enter into this agreement and that their services are not in violation of any other existing contracts or legal agreements. Additional types of Maine Contracts between Television Advertising Production Company and Actor to do Infomercial may include: 1. Exclusive Contract: This contract would grant the television advertising production company exclusive rights to engage the actor's services for the production of infomercials during a specific period or for a specific product or brand. 2. Non-Exclusive Contract: This type of contract allows the actor to engage in other similar projects with different television advertising companies while still committing to the production of infomercials. 3. Endorsement Contract: This contract specifically focuses on the actor endorsing a particular product or service through the infomercial, often requiring the actor to use or appear with the endorsed product. In conclusion, a Maine Contract between a Television Advertising Production Company and an Actor to do an Infomercial is an essential document that provides clarity and legal protection for both parties involved in the production process. By covering various aspects such as compensation, scope of work, ownership rights, and confidentiality, this contract ensures a smooth collaboration and successful execution of television infomercials.
