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.
Pennsylvania Contract between Television Advertising Production Company and Actor to do Infomercial: In Pennsylvania, when a television advertising production company collaborates with an actor to produce an infomercial, it is crucial to have a comprehensive contract in place to ensure both parties' rights and obligations are clearly defined. This contract serves as a legally binding agreement and protects the interests of both the production company and the actor involved. Here is a detailed description of what this type of contract typically entails: 1. Parties Involved: Clearly state the names and contact details of the television advertising production company and the actor. 2. Scope of Work: Outline the specific details of the infomercial project, including the purpose, duration, and any specific requirements such as script, filming locations, and target audience. 3. Compensation: Define the payment structure for the actor's services, including any upfront fees, hourly rates, additional compensation for overtime or extra services, and reimbursement for expenses related to the production. 4. Intellectual Property: Specify the ownership rights and usage of the intellectual property created during the infomercial production. This may include the rights to the script, visuals, audio, or any other materials produced. 5. Exclusivity and Conflicts: Address any exclusivity agreements that require the actor not to engage in similar projects during the production period or for a specific timeframe. Disclose any potential conflicts of interest and how such conflicts will be managed. 6. Non-Disclosure Agreement: Include a clause to protect the confidentiality of any sensitive or proprietary information shared during the production, ensuring it is not disclosed to third parties. 7. Indemnification and Liability: Define the responsibilities of each party regarding third-party claims, damages, or liabilities that may arise during and after the production. Specify insurance requirements and the party responsible for obtaining coverage. 8. Termination Clause: Establish the conditions under which either party can terminate the contract, including contractual breaches, failure to perform obligations, or mutual agreement. 9. Governing Law and Dispute Resolution: Indicate that the contract will be governed by the laws of Pennsylvania and specify the process for resolving any disputes, such as through mediation, arbitration, or litigation. 10. Additional Clauses: Depending on the specific circumstances, include any relevant additional clauses, such as rights to use the actor's name, image, or likeness for marketing purposes, insurance requirements, and any obligations or permissions related to product endorsements. Different types of Pennsylvania Contracts between Television Advertising Production Company and Actor to do Infomercial: 1. Standard Infomercial Contract: This is a general contract format applicable to most infomercial productions in Pennsylvania, encompassing the aforementioned key points. 2. Union-Specific Contract: If the actor is a member of a union, such as the Screen Actors Guild (SAG-AFTRA), a union-specific contract may be required to comply with union regulations and guidelines. 3. Sponsorship Contract: In cases where the infomercial is funded or sponsored by a specific brand or product, a separate sponsorship contract may be necessary to outline the terms and conditions of the brand's involvement. 4. Endorsement Contract: If the infomercial involves the actor endorsing a specific product or service, an endorsement contract may be required to establish the terms of the endorsement, compensation, and the rights and responsibilities of both parties. It is important to note that the specific terms and conditions of these contracts may vary depending on the negotiation between the production company and the actor, as well as the requirements of applicable laws and regulations. It is recommended that both parties seek legal advice to ensure the contract adequately protects their interests and complies with all relevant legal requirements.Pennsylvania Contract between Television Advertising Production Company and Actor to do Infomercial: In Pennsylvania, when a television advertising production company collaborates with an actor to produce an infomercial, it is crucial to have a comprehensive contract in place to ensure both parties' rights and obligations are clearly defined. This contract serves as a legally binding agreement and protects the interests of both the production company and the actor involved. Here is a detailed description of what this type of contract typically entails: 1. Parties Involved: Clearly state the names and contact details of the television advertising production company and the actor. 2. Scope of Work: Outline the specific details of the infomercial project, including the purpose, duration, and any specific requirements such as script, filming locations, and target audience. 3. Compensation: Define the payment structure for the actor's services, including any upfront fees, hourly rates, additional compensation for overtime or extra services, and reimbursement for expenses related to the production. 4. Intellectual Property: Specify the ownership rights and usage of the intellectual property created during the infomercial production. This may include the rights to the script, visuals, audio, or any other materials produced. 5. Exclusivity and Conflicts: Address any exclusivity agreements that require the actor not to engage in similar projects during the production period or for a specific timeframe. Disclose any potential conflicts of interest and how such conflicts will be managed. 6. Non-Disclosure Agreement: Include a clause to protect the confidentiality of any sensitive or proprietary information shared during the production, ensuring it is not disclosed to third parties. 7. Indemnification and Liability: Define the responsibilities of each party regarding third-party claims, damages, or liabilities that may arise during and after the production. Specify insurance requirements and the party responsible for obtaining coverage. 8. Termination Clause: Establish the conditions under which either party can terminate the contract, including contractual breaches, failure to perform obligations, or mutual agreement. 9. Governing Law and Dispute Resolution: Indicate that the contract will be governed by the laws of Pennsylvania and specify the process for resolving any disputes, such as through mediation, arbitration, or litigation. 10. Additional Clauses: Depending on the specific circumstances, include any relevant additional clauses, such as rights to use the actor's name, image, or likeness for marketing purposes, insurance requirements, and any obligations or permissions related to product endorsements. Different types of Pennsylvania Contracts between Television Advertising Production Company and Actor to do Infomercial: 1. Standard Infomercial Contract: This is a general contract format applicable to most infomercial productions in Pennsylvania, encompassing the aforementioned key points. 2. Union-Specific Contract: If the actor is a member of a union, such as the Screen Actors Guild (SAG-AFTRA), a union-specific contract may be required to comply with union regulations and guidelines. 3. Sponsorship Contract: In cases where the infomercial is funded or sponsored by a specific brand or product, a separate sponsorship contract may be necessary to outline the terms and conditions of the brand's involvement. 4. Endorsement Contract: If the infomercial involves the actor endorsing a specific product or service, an endorsement contract may be required to establish the terms of the endorsement, compensation, and the rights and responsibilities of both parties. It is important to note that the specific terms and conditions of these contracts may vary depending on the negotiation between the production company and the actor, as well as the requirements of applicable laws and regulations. It is recommended that both parties seek legal advice to ensure the contract adequately protects their interests and complies with all relevant legal requirements.
