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.
A Puerto Rico Contract between a Television Advertising Production Company and an Actor to do an Infomercial typically outlines the specific terms and conditions agreed upon by the parties involved. This document serves as a legal agreement ensuring both the production company and the actor understand their obligations, rights, compensation, and other essential aspects related to the production of the infomercial. Here is a detailed description of what generally entails in such a contract, including relevant keywords: 1. Parties involved: The contract begins by identifying the parties involved, including the full legal names of the Television Advertising Production Company and the Actor. It is important to clearly state the legal status and addresses of both parties. 2. Objective: The contract outlines the objective of the agreement, specifying that the actor will be engaged to perform in an infomercial produced by the television advertising production company. Keywords: objective, engagement, infomercial production. 3. Duration: The contract states the dates during which the actor is required to perform their role in the infomercial. It also includes information regarding the shooting schedule, potential reshoots, and any other relevant timeframes. Keywords: duration, shooting schedule, reshoots. 4. Compensation: This section details the compensation that the actor will receive for their participation in the infomercial. It covers the actor's fees, royalties, bonus structures, and any other financial arrangements agreed upon by the parties. Keywords: compensation, fees, royalties, bonus structure. 5. Rights and Usage: In this section, the contract addresses the ownership and usage rights of the infomercial. It outlines whether the production company or any affiliates will have exclusive rights to use the actor's likeness, name, performance, or any other contributions made during the production. Keywords: rights, usage, likeness. 6. Confidentiality and Non-Disclosure: This portion ensures that the actor will maintain confidentiality regarding sensitive and proprietary information disclosed by the production company during the production process. Keywords: confidentiality, non-disclosure, sensitive information. 7. Representations and Warranties: The contract includes representations and warranties made by both the production company and the actor. These statements confirm that they have the legal rights, authority, and necessary permissions to enter into the agreement. Keywords: representations, warranties, legal rights. 8. Termination: This clause defines the conditions under which the contract may be terminated by either party, including reasons such as breach of contract, non-performance, or any other mutually agreed-upon circumstances. Keywords: termination, breach of contract, non-performance. 9. Indemnification: This section outlines the indemnification obligations of both parties in case of any claims, damages, lawsuits, or liabilities arising during or after the production of the infomercial. Keywords: indemnification, claims, liabilities. 10. Governing Law and Jurisdiction: The contract specifies the governing law of Puerto Rico and the designated jurisdiction for any legal disputes that may arise between the parties under the agreement. Keywords: governing law, jurisdiction, legal disputes. Different types of Puerto Rico Contract between Television Advertising Production Company and Actor to do Infomercial might include: 1. Standard Infomercial Contract. 2. Exclusive Infomercial Contract. 3. Endorsement Infomercial Contract. 4. Product Placement Infomercial Contract. 5. Pay-per-Sale Infomercial Contract. Note: The specific contents and structure of a contract may vary based on individual circumstances and legal requirements. It is advised to consult with a legal professional to draft or review any contract to ensure it conforms to Puerto Rico's laws and regulations.
