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.
Rhode Island is a state located in the New England region of the United States. It is the smallest state in terms of both land area and population. Known for its stunning coastline, historic landmarks, and vibrant cultural scene, Rhode Island offers a unique setting for television advertising production. In the realm of television advertising, infomercials have become a popular medium for companies to promote their products or services. To facilitate the smooth execution of an infomercial production in Rhode Island, a contract is typically established between the Television Advertising Production Company and the Actor. This contract outlines the terms and conditions agreed upon by both parties involved. A Rhode Island Contract between a Television Advertising Production Company and an Actor to do an Infomercial serves as a legally binding agreement to ensure that all aspects of the production are properly addressed and that both parties' rights and responsibilities are clearly defined. Here are some key points that are typically covered in such contracts: 1. Engagement: This section states that the Actor agrees to perform specific services for the Television Advertising Production Company as outlined in the contract. It specifies the duration, dates, and times of the engagement. 2. Compensation: The contract stipulates the financial arrangement for the Actor's services. It outlines the agreed-upon payment structure, including the amount to be paid, the method of payment, and any additional compensation, such as royalties or residuals. 3. Usage Rights: This section indicates the extent to which the Television Advertising Production Company can use the Actor's performance, image, likeness, and voice in the infomercial. It may cover various platforms, including television, online streaming, and social media. 4. Confidentiality and Non-Disclosure: To protect sensitive information about the production, this section ensures that both parties maintain confidentiality and refrain from disclosing any proprietary or confidential details related to the project. 5. Indemnification: This provision states that the Actor will not hold the Television Advertising Production Company liable for any damages, losses, or claims arising from their participation in the infomercial. It also includes circumstances where the Television Advertising Production Company agrees to indemnify the Actor. 6. Termination: In the event either party wishes to terminate the contract early, this section outlines the conditions and procedures for doing so, including any associated penalties or consequences. 7. Governing Law: This specifies that any legal disputes or issues will be governed by Rhode Island law, ensuring that the contract is enforceable within the state's jurisdiction. Some variations of Rhode Island Contracts between Television Advertising Production Companies and Actors to do Infomercials can be specific to certain industries or products. For example, contracts may differ if the infomercial involves pharmaceuticals, beauty products, or dietary supplements. In such cases, additional clauses related to compliance with state and federal regulations may be included to ensure legal compliance and adherence to industry standards. Overall, a Rhode Island Contract between a Television Advertising Production Company and an Actor to do an Infomercial serves as a comprehensive agreement that protects the rights and interests of both parties while ensuring the smooth production and distribution of the infomercial content.
