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.
Missouri Contract Types between Television Advertising Production Company and Actor to do Infomercial: 1. General Professional Service Agreement: This type of contract is a comprehensive agreement between the television advertising production company and the actor to perform in an infomercial. It covers all the essential terms and conditions related to compensation, creative control, intellectual property rights, exclusivity, and the duration of the project. 2. Talent Release Agreement: This contract is focused primarily on obtaining the actor's consent to use their name, image, voice, and likeness in the infomercial production. It grants the television advertising production company the necessary rights to promote and broadcast the advertisement featuring the actor. 3. Non-Disclosure Agreement (NDA): An NDA is a crucial contract that ensures the confidentiality of trade secrets, strategies, and sensitive information shared between the television advertising production company and the actor. It prohibits the actor from disclosing any confidential information, scripts, or concept details related to the infomercial. 4. Indemnity Agreement: The indemnity agreement protects the television advertising production company from any claims, damages, or liability arising out of the actor's actions during the infomercial production. It ensures that the actor takes responsibility for any violations, injuries, or legal issues caused by their conduct. 5. Payment Agreement: This contract focuses mainly on the financial aspect of the infomercial project. It outlines the payment terms, including the actor's compensation structure, payment schedule, and any additional fees or royalties associated with the project's success, such as revenue sharing or bonuses. 6. Intellectual Property Rights Agreement: This agreement establishes the ownership and usage rights of the creative content produced during the infomercial. It clearly outlines the transfer of intellectual property rights from the actor to the television advertising production company, ensuring that the company has complete control over the commercial's distribution, duplication, and modification. 7. Termination Agreement: In cases of unforeseen circumstances or breach of contract, this agreement defines the conditions under which both parties can terminate the contract. It specifies the notice period, the rights to any unfinished work, and any financial obligations or penalties associated with the contract's termination. These various types of contracts address different aspects of the working relationship between the television advertising production company and the actor, ensuring compliance with legal obligations, protecting rights, and establishing clear expectations for both parties involved in the infomercial production.Missouri Contract Types between Television Advertising Production Company and Actor to do Infomercial: 1. General Professional Service Agreement: This type of contract is a comprehensive agreement between the television advertising production company and the actor to perform in an infomercial. It covers all the essential terms and conditions related to compensation, creative control, intellectual property rights, exclusivity, and the duration of the project. 2. Talent Release Agreement: This contract is focused primarily on obtaining the actor's consent to use their name, image, voice, and likeness in the infomercial production. It grants the television advertising production company the necessary rights to promote and broadcast the advertisement featuring the actor. 3. Non-Disclosure Agreement (NDA): An NDA is a crucial contract that ensures the confidentiality of trade secrets, strategies, and sensitive information shared between the television advertising production company and the actor. It prohibits the actor from disclosing any confidential information, scripts, or concept details related to the infomercial. 4. Indemnity Agreement: The indemnity agreement protects the television advertising production company from any claims, damages, or liability arising out of the actor's actions during the infomercial production. It ensures that the actor takes responsibility for any violations, injuries, or legal issues caused by their conduct. 5. Payment Agreement: This contract focuses mainly on the financial aspect of the infomercial project. It outlines the payment terms, including the actor's compensation structure, payment schedule, and any additional fees or royalties associated with the project's success, such as revenue sharing or bonuses. 6. Intellectual Property Rights Agreement: This agreement establishes the ownership and usage rights of the creative content produced during the infomercial. It clearly outlines the transfer of intellectual property rights from the actor to the television advertising production company, ensuring that the company has complete control over the commercial's distribution, duplication, and modification. 7. Termination Agreement: In cases of unforeseen circumstances or breach of contract, this agreement defines the conditions under which both parties can terminate the contract. It specifies the notice period, the rights to any unfinished work, and any financial obligations or penalties associated with the contract's termination. These various types of contracts address different aspects of the working relationship between the television advertising production company and the actor, ensuring compliance with legal obligations, protecting rights, and establishing clear expectations for both parties involved in the infomercial production.
