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: Understanding New Mexico Contracts for Television Advertising Production Company and Actor to do Infomercial Introduction: In the dynamic world of television advertising, New Mexico has specific contracts that govern the relationship between television advertising production companies and actors for the creation and production of infomercials. This article aims to provide a detailed description of these contracts, outlining their various types and relevant keywords. 1. Exclusive Performance Agreement: In this type of contract, the actor agrees to work exclusively with one specific television advertising production company for a stipulated time period. This agreement ensures that the actor dedicates their services solely to the advertising company, making them the exclusive face of their infomercials. 2. Non-Exclusive Performance Agreement: This contract permits the actor to work with multiple television advertising production companies simultaneously or during specific periods. While the actor may collaborate with other companies, they are still required to meet the obligations set out in this contract with each individual advertising production company. 3. Compensation Agreement: This contract establishes the terms and conditions related to the actor's salary or payment for their involvement in the infomercial. It may consider factors such as the actor's experience, time commitment, and the complexity of the project in determining the compensation. 4. Rights and Usage Agreement: This contract outlines the rights and permissions granted by the actor to the television advertising production company for using their likeness, image, or performance in the infomercial. It is crucial to define the scope and duration of these rights, ensuring both parties are clear on the extent to which the actor's work can be utilized. 5. Confidentiality Agreement: To protect sensitive information related to the infomercial, this contract ensures that the actor maintains confidentiality about the production process, script, trade secrets, or any proprietary information shared throughout their engagement. 6. Termination Agreement: In the event of a breach of contract or mutually agreed-upon circumstances, this contract facilitates the termination of the agreement between the television advertising production company and the actor. It outlines the procedure for terminating the engagement, including any payment liabilities or resolution of disputes. Conclusion: New Mexico has specific contractual agreements in place to govern the relationship between television advertising production companies and actors regarding infomercial production. From exclusive performance agreements to termination contracts, each contract has crucial elements and relevant keywords that help define the roles, responsibilities, and obligations of the parties involved. Understanding these contracts is essential for navigating the infomercial industry in New Mexico successfully.Title: Understanding New Mexico Contracts for Television Advertising Production Company and Actor to do Infomercial Introduction: In the dynamic world of television advertising, New Mexico has specific contracts that govern the relationship between television advertising production companies and actors for the creation and production of infomercials. This article aims to provide a detailed description of these contracts, outlining their various types and relevant keywords. 1. Exclusive Performance Agreement: In this type of contract, the actor agrees to work exclusively with one specific television advertising production company for a stipulated time period. This agreement ensures that the actor dedicates their services solely to the advertising company, making them the exclusive face of their infomercials. 2. Non-Exclusive Performance Agreement: This contract permits the actor to work with multiple television advertising production companies simultaneously or during specific periods. While the actor may collaborate with other companies, they are still required to meet the obligations set out in this contract with each individual advertising production company. 3. Compensation Agreement: This contract establishes the terms and conditions related to the actor's salary or payment for their involvement in the infomercial. It may consider factors such as the actor's experience, time commitment, and the complexity of the project in determining the compensation. 4. Rights and Usage Agreement: This contract outlines the rights and permissions granted by the actor to the television advertising production company for using their likeness, image, or performance in the infomercial. It is crucial to define the scope and duration of these rights, ensuring both parties are clear on the extent to which the actor's work can be utilized. 5. Confidentiality Agreement: To protect sensitive information related to the infomercial, this contract ensures that the actor maintains confidentiality about the production process, script, trade secrets, or any proprietary information shared throughout their engagement. 6. Termination Agreement: In the event of a breach of contract or mutually agreed-upon circumstances, this contract facilitates the termination of the agreement between the television advertising production company and the actor. It outlines the procedure for terminating the engagement, including any payment liabilities or resolution of disputes. Conclusion: New Mexico has specific contractual agreements in place to govern the relationship between television advertising production companies and actors regarding infomercial production. From exclusive performance agreements to termination contracts, each contract has crucial elements and relevant keywords that help define the roles, responsibilities, and obligations of the parties involved. Understanding these contracts is essential for navigating the infomercial industry in New Mexico successfully.