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 Virginia contract between a Television Advertising Production Company and an Actor to do an Infomercial is a legal agreement that outlines the terms and conditions under which the actor will perform in an infomercial produced by the advertising company. This contract is crucial in establishing a clear understanding between the parties involved and protecting their respective rights and obligations. The contract typically includes the following key elements: 1. Parties: Clearly state the names and contact information of both parties, including the production company and the actor. 2. Scope of Work: Define the specific role and responsibilities of the actor in the infomercial, including the duration of their appearance, the content to be delivered, and any additional requirements such as rehearsals or script modifications. 3. Compensation: Detail the compensation arrangement for the actor, whether it is a fixed fee, hourly rate, or a percentage of the infomercial's profits. Mention any additional expenses or reimbursements the actor may be entitled to. 4. Intellectual Property: Ensure that the contract addresses the ownership of the infomercial's intellectual property rights. Specify whether the actor will retain any ownership or rights to their performance or if the production company will have full control over its use, distribution, and modifications. 5. Termination: Outline the circumstances under which either party can terminate the contract, including any notice period required and the potential consequences for breach of contract. 6. Non-disclosure Agreement (NDA): If necessary, include a separate NDA or a confidentiality clause within the contract to protect confidential information shared during the production process. Potential types of Virginia contracts between a Television Advertising Production Company and an Actor to do an Infomercial may include: 1. Fixed Fee Contract: This type of contract specifies a predetermined amount that the actor will receive as compensation for their performance in the infomercial. It may also include provisions for additional compensation based on factors like the infomercial's success or subsequent use of the actor's likeness. 2. Royalty-Based Contract: In this agreement, the actor receives a percentage of the infomercial's profits or revenue. The contract should outline how royalties will be calculated and distributed, considering factors like product sales or viewer response. 3. Endorsement Contract: If the infomercial involves the actor endorsing a specific product or service, the contract may include additional clauses related to the actor's obligations, restrictions, and liability concerning the endorsement. 4. Exclusive Contract: In some cases, the production company may require the actor to sign an exclusive contract, ensuring that they do not engage in any competing endorsements or appear in similar infomercials during a specified time period. It is crucial for all parties involved to carefully review and negotiate the terms of the Virginia contract to ensure mutual understanding, protect their rights, and avoid future disputes during and after the infomercial's production.A Virginia contract between a Television Advertising Production Company and an Actor to do an Infomercial is a legal agreement that outlines the terms and conditions under which the actor will perform in an infomercial produced by the advertising company. This contract is crucial in establishing a clear understanding between the parties involved and protecting their respective rights and obligations. The contract typically includes the following key elements: 1. Parties: Clearly state the names and contact information of both parties, including the production company and the actor. 2. Scope of Work: Define the specific role and responsibilities of the actor in the infomercial, including the duration of their appearance, the content to be delivered, and any additional requirements such as rehearsals or script modifications. 3. Compensation: Detail the compensation arrangement for the actor, whether it is a fixed fee, hourly rate, or a percentage of the infomercial's profits. Mention any additional expenses or reimbursements the actor may be entitled to. 4. Intellectual Property: Ensure that the contract addresses the ownership of the infomercial's intellectual property rights. Specify whether the actor will retain any ownership or rights to their performance or if the production company will have full control over its use, distribution, and modifications. 5. Termination: Outline the circumstances under which either party can terminate the contract, including any notice period required and the potential consequences for breach of contract. 6. Non-disclosure Agreement (NDA): If necessary, include a separate NDA or a confidentiality clause within the contract to protect confidential information shared during the production process. Potential types of Virginia contracts between a Television Advertising Production Company and an Actor to do an Infomercial may include: 1. Fixed Fee Contract: This type of contract specifies a predetermined amount that the actor will receive as compensation for their performance in the infomercial. It may also include provisions for additional compensation based on factors like the infomercial's success or subsequent use of the actor's likeness. 2. Royalty-Based Contract: In this agreement, the actor receives a percentage of the infomercial's profits or revenue. The contract should outline how royalties will be calculated and distributed, considering factors like product sales or viewer response. 3. Endorsement Contract: If the infomercial involves the actor endorsing a specific product or service, the contract may include additional clauses related to the actor's obligations, restrictions, and liability concerning the endorsement. 4. Exclusive Contract: In some cases, the production company may require the actor to sign an exclusive contract, ensuring that they do not engage in any competing endorsements or appear in similar infomercials during a specified time period. It is crucial for all parties involved to carefully review and negotiate the terms of the Virginia contract to ensure mutual understanding, protect their rights, and avoid future disputes during and after the infomercial's production.
