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.
Contra Costa California Contract between Television Advertising Production Company and Actor to do Infomercial: A Comprehensive Overview Introduction: In Contra Costa, California, when a Television Advertising Production Company and an Actor come together to collaborate on an infomercial project, a well-drafted contract becomes essential to ensure clarity, protect the rights of both parties, and outline the terms of their partnership. This detailed description will provide an overview of what such a contract entails, including key sections, provisions, and possible variations. 1. Parties Involved: The contract will identify the Television Advertising Production Company (hereinafter referred to as "Company") as the entity responsible for the production and distribution of the infomercial. The Actor (hereinafter referred to as "Artist") will be designated as the individual hired to perform, represent, or endorse the product/service in the infomercial. 2. Project Description: The contract should explicitly define the scope and nature of the infomercial project. This may include details such as the product/service being advertised, the desired tone, style, and target audience, as well as any specific requirements or constraints. 3. Compensation and Royalties: The contract will outline the financial agreement between the Company and Artist. This section may cover the Artist's fee, including any upfront payments, milestones, or performance bonuses. Additionally, it may detail royalty or residual agreements for ongoing use of the infomercial by the Company. 4. Obligations and Services: This section will outline the responsibilities of both parties. The Company may be responsible for providing the necessary equipment, location, and production resources, while the Artist may commit to being available for rehearsals, recordings, and promotional events as required. 5. Term and Termination: The contract will establish the duration of the agreement, including any specific dates or timeframes. It may also include provisions for early termination, specifying the conditions under which either party can terminate the contract and any associated financial ramifications. 6. Intellectual Property Rights: To protect the interests of both the Company and Artist, this section will address ownership and usage of intellectual property. It may include provisions allowing the Company exclusive rights to the infomercial, while ensuring the Artist's approval rights and possibilities for using the material in their portfolio. 7. Non-Disclosure and Confidentiality: To maintain privacy and protect trade secrets, a non-disclosure or confidentiality clause may be included, preventing either party from disclosing sensitive information about the project or the other party involved. Types of Contracts: Within the realm of Contra Costa, California, the specific type of contract between a Television Advertising Production Company and an Actor to do an infomercial may vary based on factors like project complexity, legal requirements, and the preferences of the involved parties. Some common variations include: a. Fixed-Fee Contract: This contract structure defines a predetermined fee that the Artist receives for their involvement in the infomercial project, irrespective of the project's success or revenue generated. b. Royalty-based Contract: In this arrangement, the Artist agrees to a lower upfront fee but is entitled to a percentage of the revenue generated by the infomercial, ensuring a potential ongoing income stream. Conclusion: When undertaking an infomercial project in Contra Costa, California, a detailed and comprehensive contract is crucial. By addressing essential aspects such as project description, compensation, obligations, intellectual property rights, and confidentiality, this contract sets the stage for a successful and legally compliant partnership between a Television Advertising Production Company and an Actor.Contra Costa California Contract between Television Advertising Production Company and Actor to do Infomercial: A Comprehensive Overview Introduction: In Contra Costa, California, when a Television Advertising Production Company and an Actor come together to collaborate on an infomercial project, a well-drafted contract becomes essential to ensure clarity, protect the rights of both parties, and outline the terms of their partnership. This detailed description will provide an overview of what such a contract entails, including key sections, provisions, and possible variations. 1. Parties Involved: The contract will identify the Television Advertising Production Company (hereinafter referred to as "Company") as the entity responsible for the production and distribution of the infomercial. The Actor (hereinafter referred to as "Artist") will be designated as the individual hired to perform, represent, or endorse the product/service in the infomercial. 2. Project Description: The contract should explicitly define the scope and nature of the infomercial project. This may include details such as the product/service being advertised, the desired tone, style, and target audience, as well as any specific requirements or constraints. 3. Compensation and Royalties: The contract will outline the financial agreement between the Company and Artist. This section may cover the Artist's fee, including any upfront payments, milestones, or performance bonuses. Additionally, it may detail royalty or residual agreements for ongoing use of the infomercial by the Company. 4. Obligations and Services: This section will outline the responsibilities of both parties. The Company may be responsible for providing the necessary equipment, location, and production resources, while the Artist may commit to being available for rehearsals, recordings, and promotional events as required. 5. Term and Termination: The contract will establish the duration of the agreement, including any specific dates or timeframes. It may also include provisions for early termination, specifying the conditions under which either party can terminate the contract and any associated financial ramifications. 6. Intellectual Property Rights: To protect the interests of both the Company and Artist, this section will address ownership and usage of intellectual property. It may include provisions allowing the Company exclusive rights to the infomercial, while ensuring the Artist's approval rights and possibilities for using the material in their portfolio. 7. Non-Disclosure and Confidentiality: To maintain privacy and protect trade secrets, a non-disclosure or confidentiality clause may be included, preventing either party from disclosing sensitive information about the project or the other party involved. Types of Contracts: Within the realm of Contra Costa, California, the specific type of contract between a Television Advertising Production Company and an Actor to do an infomercial may vary based on factors like project complexity, legal requirements, and the preferences of the involved parties. Some common variations include: a. Fixed-Fee Contract: This contract structure defines a predetermined fee that the Artist receives for their involvement in the infomercial project, irrespective of the project's success or revenue generated. b. Royalty-based Contract: In this arrangement, the Artist agrees to a lower upfront fee but is entitled to a percentage of the revenue generated by the infomercial, ensuring a potential ongoing income stream. Conclusion: When undertaking an infomercial project in Contra Costa, California, a detailed and comprehensive contract is crucial. By addressing essential aspects such as project description, compensation, obligations, intellectual property rights, and confidentiality, this contract sets the stage for a successful and legally compliant partnership between a Television Advertising Production Company and an Actor.
