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.
Virgin Islands Contract between Television Advertising Production Company and Actor to do Infomercial A Virgin Islands contract between a television advertising production company and an actor to do an infomercial is a legally binding agreement that outlines the terms and conditions under which the actor will provide their services for the production of the infomercial in the Virgin Islands. This contract ensures that both parties are protected and understand their responsibilities throughout the duration of the project. The contract will typically include the following key details: 1. Parties involved: Clearly state the names and contact information of the television advertising production company and the actor taking part in the infomercial. 2. Scope of work: Describe the nature of the infomercial project in detail, including the concept, script, shooting locations, and any specific requirements or expectations from the actor. 3. Compensation: Clearly define the payment terms and conditions for the actor's services, including the agreed-upon fee or royalty structure. This may include details on how expenses such as travel, accommodation, and meals will be reimbursed. 4. Project timeline: Outline the start and end dates of the production, as well as any interim milestones, such as script reading, rehearsals, and shooting dates. Include provisions for any potential delays and how they will be handled. 5. Copyright and intellectual property: Specify who holds the rights to the infomercial and any other intellectual property created during the project, such as promotional materials or behind-the-scenes footage. 6. Non-disclosure agreement: Include a clause to protect the confidentiality of any sensitive information or trade secrets shared between the parties during the course of the contract. 7. Exclusivity and non-competition: If required, detail any restrictions on the actor's ability to participate in similar or competing projects during the duration of the contract. 8. Termination clause: Establish the conditions under which either party can terminate the contract, including any required notice periods or circumstances like breach of contract. 9. Indemnification and liability: State the responsibility each party holds for any damages, liabilities, or legal issues that may arise during the production or as a result of the infomercial. 10. Governing law and jurisdiction: Specifying that the contract is governed by the laws of the Virgin Islands and any disputes would be resolved within the jurisdiction of the Virgin Islands court system. Different types of Virgin Islands contracts between television advertising production companies and actors to do infomercials may include: 1. General Service Agreement: An agreement that covers the general terms and conditions of the actor's services and the production company's responsibilities. 2. Product Endorsement Agreement: A contract where the actor endorses a specific product or brand while appearing in the infomercial. 3. Exclusive Agreement: A contract that grants exclusivity to the actor, prohibiting them from participating in any similar projects for a specified period. 4. Royalty Agreement: An agreement where the actor receives a percentage of the revenue generated by the infomercial or sales of the advertised products. By utilizing these keywords, you can create a detailed description of a Virgin Islands contract between a television advertising production company and an actor to do an infomercial, covering the important aspects and potential variations of such contracts.
