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.
Title: A Comprehensive Overview of Minnesota Contracts for Infomercials between Television Advertising Production Companies and Actors Introduction: In the world of television advertising, infomercials have become a popular medium to promote products and services. When creating an infomercial in the state of Minnesota, it is crucial for television advertising production companies and actors to establish a legally binding agreement or contract. This detailed description will guide you through the various types of contracts that exist for such collaborations, highlighting the key terms and conditions involved. 1. Minnesota Contract for Infomercial Services: This form of contract outlines the general terms and conditions between the television advertising production company and the actor hired to perform in the infomercial. It covers essential aspects such as compensation, shooting schedule, and intellectual property rights. This agreement is signed prior to the commencement of the project and serves as the foundation for a successful collaboration. 2. Non-Disclosure Agreement (NDA): An NDA is often incorporated into the Minnesota Contract for Infomercial Services to protect confidential information shared between the television advertising production company and the actor. This agreement ensures that any sensitive details, such as trade secrets or pre-release product information, are kept strictly confidential. 3. Talent Release Agreement: A Talent Release Agreement is a vital contract that grants the television advertising production company the right to use the actor's likeness, voice, and performance in the infomercial. It clarifies that the actor consents to their image being featured in the infomercial and that they waive any claims or demands for remuneration beyond the agreed-upon compensation. 4. Intellectual Property Agreement: This agreement safeguards the intellectual property rights associated with the infomercial's content. It typically grants the television advertising production company full ownership of the finished infomercial, including script, footage, and any other creative elements developed during the production stage. The actor acknowledges and relinquishes any rights they may have had in relation to their contribution to the infomercial. 5. Exclusive Services Agreement: In some cases, television advertising production companies may require actors to sign an Exclusive Services Agreement, which ensures the actor's dedication to working exclusively on the infomercial project for a specific period. This agreement prohibits the actor from participating in any similar advertising projects that may conflict with the infomercial's airing or compromise the television advertising company's product exclusivity. 6. Payment Terms and Release Schedule: Contracts between television advertising production companies and actors for infomercials in Minnesota clearly delineate the payment terms and release schedule. It specifies the agreed-upon compensation amount, payment milestones, and the date or conditions under which the actor will receive their remuneration. Payment arrangements usually vary based on the project's complexity, duration, and the actor's role. Conclusion: Creating a successful infomercial in Minnesota requires a well-structured contract between television advertising production companies and actors. The types of contracts mentioned above — Minnesota Contract for Infomercial Services, NDA, Talent Release Agreement, Intellectual Property Agreement, Exclusive Services Agreement, and Payment Terms and Release Schedule — are crucial in establishing a clear understanding of the project's scope, protecting confidential information, securing intellectual property rights, and ensuring fair compensation for the actor's services.Title: A Comprehensive Overview of Minnesota Contracts for Infomercials between Television Advertising Production Companies and Actors Introduction: In the world of television advertising, infomercials have become a popular medium to promote products and services. When creating an infomercial in the state of Minnesota, it is crucial for television advertising production companies and actors to establish a legally binding agreement or contract. This detailed description will guide you through the various types of contracts that exist for such collaborations, highlighting the key terms and conditions involved. 1. Minnesota Contract for Infomercial Services: This form of contract outlines the general terms and conditions between the television advertising production company and the actor hired to perform in the infomercial. It covers essential aspects such as compensation, shooting schedule, and intellectual property rights. This agreement is signed prior to the commencement of the project and serves as the foundation for a successful collaboration. 2. Non-Disclosure Agreement (NDA): An NDA is often incorporated into the Minnesota Contract for Infomercial Services to protect confidential information shared between the television advertising production company and the actor. This agreement ensures that any sensitive details, such as trade secrets or pre-release product information, are kept strictly confidential. 3. Talent Release Agreement: A Talent Release Agreement is a vital contract that grants the television advertising production company the right to use the actor's likeness, voice, and performance in the infomercial. It clarifies that the actor consents to their image being featured in the infomercial and that they waive any claims or demands for remuneration beyond the agreed-upon compensation. 4. Intellectual Property Agreement: This agreement safeguards the intellectual property rights associated with the infomercial's content. It typically grants the television advertising production company full ownership of the finished infomercial, including script, footage, and any other creative elements developed during the production stage. The actor acknowledges and relinquishes any rights they may have had in relation to their contribution to the infomercial. 5. Exclusive Services Agreement: In some cases, television advertising production companies may require actors to sign an Exclusive Services Agreement, which ensures the actor's dedication to working exclusively on the infomercial project for a specific period. This agreement prohibits the actor from participating in any similar advertising projects that may conflict with the infomercial's airing or compromise the television advertising company's product exclusivity. 6. Payment Terms and Release Schedule: Contracts between television advertising production companies and actors for infomercials in Minnesota clearly delineate the payment terms and release schedule. It specifies the agreed-upon compensation amount, payment milestones, and the date or conditions under which the actor will receive their remuneration. Payment arrangements usually vary based on the project's complexity, duration, and the actor's role. Conclusion: Creating a successful infomercial in Minnesota requires a well-structured contract between television advertising production companies and actors. The types of contracts mentioned above — Minnesota Contract for Infomercial Services, NDA, Talent Release Agreement, Intellectual Property Agreement, Exclusive Services Agreement, and Payment Terms and Release Schedule — are crucial in establishing a clear understanding of the project's scope, protecting confidential information, securing intellectual property rights, and ensuring fair compensation for the actor's services.
