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.
Oregon Contract between Television Advertising Production Company and Actor to do Infomercial Overview: An Oregon contract between a Television Advertising Production Company and an Actor is a legal agreement that outlines the terms and conditions for the production and broadcast of an infomercial. This contract helps to protect the rights and interests of both parties involved and ensures a smooth working relationship. Key Elements of the Contract: 1. Parties Involved: The contract should clearly state the names and contact information of both the Television Advertising Production Company and the Actor. This ensures that both parties are identified accurately. 2. Project Description: The contract should provide a detailed description of the infomercial, including its purpose, target audience, and any specific guidelines or requirements. 3. Compensation: The contract should outline the agreed-upon compensation for the Actor's services. This may include an upfront payment, royalties, or any other agreed-upon form of remuneration. It is essential to specify the payment terms and schedule. 4. Intellectual Property: The contract should address who owns the copyright and intellectual property rights associated with the infomercial. Typically, the Production Company retains the rights, but it's important to clearly state this in the contract. 5. Production Schedule: The contract should include a production timeline with specific dates for pre-production, shooting, editing, and final delivery of the infomercial. This ensures that both parties are aware of the project's timeline and can plan accordingly. 6. Non-Disclosure and Confidentiality: To protect proprietary information, the contract should include a clause that prohibits the Actor from disclosing any confidential information learned during the project. This ensures the confidentiality of trade secrets and sensitive information. 7. Termination Clause: It is important to include a termination clause that outlines the circumstances under which either party can terminate the contract. This includes provisions for breach of contract, inability to work together, or other unforeseen circumstances. Types of Oregon Contracts between Television Advertising Production Company and Actor: 1. Standard Infomercial Contract: This is the most common contract used for infomercial productions in Oregon. It covers the essential elements mentioned above and is suitable for most infomercial projects. 2. Endorsement Contract: In cases where the Actor will be endorsing a product or service in the infomercial, an endorsement contract may be required. This contract outlines the specific terms and conditions for the endorsement, including exclusivity agreements and additional compensation. 3. Non-Compete Contract: If the Television Advertising Production Company requires the Actor to refrain from participating in similar infomercials for competing products or services, a non-compete contract may be necessary. This contract restricts the Actor's ability to work with competitors for a specified period. Conclusion: An Oregon contract between a Television Advertising Production Company and an Actor is a crucial legal document that establishes the terms and conditions for producing an infomercial. By ensuring clear communication and comprehensive agreements, both parties can work together efficiently to create and promote the infomercial successfully.
