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.
New York Contract between Television Advertising Production Company and Actor to do Infomercial: A New York contract between a television advertising production company and an actor for an infomercial is a legally binding agreement that outlines the terms and conditions for the actor's participation in the production. This contract serves as a comprehensive document that protects the rights and obligations of both parties involved, ensuring a smooth and mutually beneficial working relationship. The main purpose of this contract is to establish the scope of the actor's services, the compensation they will receive, and the rights they grant to the production company regarding the use of their likeness, image, and performance in the infomercial. Here are some key elements typically included in such contracts: 1. Parties: Clearly identify the parties involved, including the full legal names of the production company and the actor. Mention their contact details such as addresses, phone numbers, and email addresses. 2. Project Description: Provide a detailed description of the infomercial, including its title, length, and intended purpose. Specify the products or services being advertised and any additional requirements or expectations from the actor. 3. Term and Termination: State the start and end dates of the agreement, and any provisions for early termination by either party. Include details on how notice of termination should be given and any associated penalties or obligations. 4. Services and Obligations: Clearly define the actor's role and responsibilities within the infomercial. Specify details such as the shooting schedule, script requirements, rehearsal time, and any other necessary activities. Outline any additional obligations, such as participating in promotional activities or attending events related to the infomercial. 5. Compensation: Describe how the actor will be compensated for their services. This may include information on the agreed-upon fee, payment schedule, and any additional expenses or bonuses. 6. Intellectual Property Rights: Clearly state the rights and permissions granted by the actor to the production company regarding the use of their performance, name, likeness, and image. Outline any limitations or restrictions on the use of this material, such as geographical or time-based limitations. 7. Confidentiality and Non-Disclosure: Include provisions that ensure the confidentiality of any sensitive information shared during the production process, as well as any trade secrets or proprietary information of the production company. 8. Indemnification: Clarify the responsibilities of each party regarding potential legal claims, damages, or liabilities arising from the production. Determine the party responsible for legal fees or any financial settlements in case of disputes. 9. Governing Law and Jurisdiction: Specify that the contract is governed by the laws of the state of New York and any legal disputes will be resolved through arbitration or litigation within the appropriate courts of New York. 10. Additional Clauses: Include any additional clauses or provisions that are relevant to the specific project, such as a non-compete clause, insurance requirements, or any other contractual obligations that both parties deem necessary. Different types of New York Contracts between Television Advertising Production Companies and Actors for Infomercials may include variations in the compensation structure, grant of rights, and specific terms related to the production schedule or actor obligations. These variations depend on the specific needs and goals of the parties involved and can be customized accordingly. Keywords: infomercial, New York, contract, television advertising production company, actor, legal agreement, compensation, services, obligations, intellectual property rights, confidentiality, indemnification, governing law, jurisdiction.
