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: New Jersey Contract between Television Advertising Production Company and Actor to do Infomercial Introduction: In the state of New Jersey, contracting between a Television Advertising Production Company and an Actor to collaborate on infomercial projects is a common practice. These contracts outline the responsibilities, rights, and obligations of both parties involved. It guarantees a transparent and mutually beneficial working relationship, protecting the interests of each party. In this article, we will discuss the various types of New Jersey contracts that address different aspects of infomercial production. 1. General Infomercial Contract: This type of contract outlines the general terms and conditions for an infomercial project. It covers aspects such as project duration, compensation, intellectual property rights, confidentiality, and dispute resolution mechanisms. The contract also details the specific roles and responsibilities of both the Television Advertising Production Company and the Actor. 2. Talent Release Agreement: A Talent Release Agreement is crucial when it comes to infomercials, as it grants the Television Advertising Production Company permission to use the Actor's image and likeness in promotional materials and broadcast. It clarifies the limitations, duration, and scope of the usage rights, aiming to protect the Actor's professional reputation and privacy. 3. Non-disclosure Agreement: In cases where sensitive information, trade secrets, or proprietary details are exchanged during the production process, a Non-disclosure Agreement (NDA) becomes essential. It ensures that both parties maintain strict confidentiality and refrain from sharing any confidential information with third parties. This agreement safeguards the proprietary interest of the Television Advertising Production Company. 4. Payment and Compensation Agreement: This specific contract focuses exclusively on financial arrangements between the Television Advertising Production Company and the Actor. It outlines the actor's compensation for their services, which can include their appearance fee, residual payments, royalties, and any additional expenses or bonuses. This agreement should specify the mode, frequency, and schedule of payment while adhering to the relevant laws governing employment and taxation. 5. Indemnification Agreement: An Indemnification Agreement is designed to protect both parties involved in an infomercial project from any claims, liabilities, or legal disputes that may arise. It clarifies that the Television Advertising Production Company will assume responsibility for any potential legal actions resulting from the production and broadcast of the infomercial. 6. Termination Agreement: Sometimes, unforeseen circumstances may require the termination of a contract before the completion of the infomercial project. A Termination Agreement addresses the terms and conditions under which the contract can be terminated by either party. It outlines the consequences of early termination, such as compensation or expenses incurred up until that point and the return of any materials or equipment. Conclusion: Contracts play a crucial role in establishing clear guidelines and protecting the rights of both the Television Advertising Production Company and the Actor in New Jersey. Each type of contract mentioned above serves a unique purpose and is vital to ensure a successful and legally compliant collaboration between the parties involved in creating infomercials. By utilizing these contracts, both parties can proceed with confidence, focusing on creating compelling and effective infomercial content.Title: New Jersey Contract between Television Advertising Production Company and Actor to do Infomercial Introduction: In the state of New Jersey, contracting between a Television Advertising Production Company and an Actor to collaborate on infomercial projects is a common practice. These contracts outline the responsibilities, rights, and obligations of both parties involved. It guarantees a transparent and mutually beneficial working relationship, protecting the interests of each party. In this article, we will discuss the various types of New Jersey contracts that address different aspects of infomercial production. 1. General Infomercial Contract: This type of contract outlines the general terms and conditions for an infomercial project. It covers aspects such as project duration, compensation, intellectual property rights, confidentiality, and dispute resolution mechanisms. The contract also details the specific roles and responsibilities of both the Television Advertising Production Company and the Actor. 2. Talent Release Agreement: A Talent Release Agreement is crucial when it comes to infomercials, as it grants the Television Advertising Production Company permission to use the Actor's image and likeness in promotional materials and broadcast. It clarifies the limitations, duration, and scope of the usage rights, aiming to protect the Actor's professional reputation and privacy. 3. Non-disclosure Agreement: In cases where sensitive information, trade secrets, or proprietary details are exchanged during the production process, a Non-disclosure Agreement (NDA) becomes essential. It ensures that both parties maintain strict confidentiality and refrain from sharing any confidential information with third parties. This agreement safeguards the proprietary interest of the Television Advertising Production Company. 4. Payment and Compensation Agreement: This specific contract focuses exclusively on financial arrangements between the Television Advertising Production Company and the Actor. It outlines the actor's compensation for their services, which can include their appearance fee, residual payments, royalties, and any additional expenses or bonuses. This agreement should specify the mode, frequency, and schedule of payment while adhering to the relevant laws governing employment and taxation. 5. Indemnification Agreement: An Indemnification Agreement is designed to protect both parties involved in an infomercial project from any claims, liabilities, or legal disputes that may arise. It clarifies that the Television Advertising Production Company will assume responsibility for any potential legal actions resulting from the production and broadcast of the infomercial. 6. Termination Agreement: Sometimes, unforeseen circumstances may require the termination of a contract before the completion of the infomercial project. A Termination Agreement addresses the terms and conditions under which the contract can be terminated by either party. It outlines the consequences of early termination, such as compensation or expenses incurred up until that point and the return of any materials or equipment. Conclusion: Contracts play a crucial role in establishing clear guidelines and protecting the rights of both the Television Advertising Production Company and the Actor in New Jersey. Each type of contract mentioned above serves a unique purpose and is vital to ensure a successful and legally compliant collaboration between the parties involved in creating infomercials. By utilizing these contracts, both parties can proceed with confidence, focusing on creating compelling and effective infomercial content.
