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.
Houston Texas Contract between Television Advertising Production Company and Actor to do Infomercial: A Comprehensive Guide Introduction: In Houston, Texas, the contract between a Television Advertising Production Company and an Actor holds significance when undertaking the production of an infomercial. This detailed description will provide valuable insights into the content and various types of contracts involved in such collaborations. Key Players: 1. Television Advertising Production Company: A company responsible for the conceptualization, production, and distribution of the infomercial. They oversee all aspects, from scriptwriting to post-production. 2. Actor: A talented individual who performs in the infomercial, bringing life to the product or service being promoted. Content of the Contract: 1. General Terms and Conditions: — Parties involved: Clearly state the names and addresses of both the production company and the actor. — Effective dates: Define the start and end dates of the contract. — Purpose: Clearly state the intention of the contract, i.e., to produce an infomercial. — Scope of work: Outline the responsibilities and obligations of the production company and the actor. — Compensation: Detail the payment structure, including any advances, royalties, or residuals. — Confidentiality: Ensure the protection of trade secrets or sensitive information. 2. Roles and Responsibilities: — Production company responsibilities: Specify the production company's obligations, including script development, filming schedule, editing, and post-production. — Actor responsibilities: Define the actor's duties, such as attending rehearsals, memorizing scripts, performing on-camera, and cooperating with the production team. 3. Intellectual Property: — Ownership: Clarify the ownership rights of the infomercial, including copyright, trademark, and any other intellectual property rights. — Usage rights: Specify the permitted usage of the infomercial, such as broadcast on television, online platforms, or in trade shows. 4. Compensation and Expenses: — Payment terms: Detail the payment structure, including the actor's fee, possible bonuses, and any other monetary compensation. — Expenses: Specify who will bear the expenses related to the production, including travel, accommodation, wardrobe, and makeup. 5. Termination: — Breach clauses: Define circumstances under which either party can terminate the contract due to a breach of terms or responsibilities. — Notice period: Determine the required duration of notice before terminating the contract. Types of Houston Texas Contracts: 1. Exclusive Contract: The production company engages the actor exclusively for the infomercial and prohibits them from appearing in any other competing advertisements for a specific duration. 2. Non-Exclusive Contract: The actor is allowed to work with other production companies and take on additional advertising projects simultaneously. 3. Fixed-Term Contract: The contract has a specified duration, and the actor's engagement is limited to that period. 4. Rolling Contract: This type of contract automatically renews for successive terms, usually on a monthly or quarterly basis, unless one of the parties terminates it. Conclusion: When it comes to an infomercial production contract in Houston, Texas, a detailed and comprehensive agreement benefits both the television advertising production company and the actor. By incorporating the outlined contract elements and understanding the types of contracts available, successful collaborations can be established, ultimately resulting in a compelling and effective infomercial.Houston Texas Contract between Television Advertising Production Company and Actor to do Infomercial: A Comprehensive Guide Introduction: In Houston, Texas, the contract between a Television Advertising Production Company and an Actor holds significance when undertaking the production of an infomercial. This detailed description will provide valuable insights into the content and various types of contracts involved in such collaborations. Key Players: 1. Television Advertising Production Company: A company responsible for the conceptualization, production, and distribution of the infomercial. They oversee all aspects, from scriptwriting to post-production. 2. Actor: A talented individual who performs in the infomercial, bringing life to the product or service being promoted. Content of the Contract: 1. General Terms and Conditions: — Parties involved: Clearly state the names and addresses of both the production company and the actor. — Effective dates: Define the start and end dates of the contract. — Purpose: Clearly state the intention of the contract, i.e., to produce an infomercial. — Scope of work: Outline the responsibilities and obligations of the production company and the actor. — Compensation: Detail the payment structure, including any advances, royalties, or residuals. — Confidentiality: Ensure the protection of trade secrets or sensitive information. 2. Roles and Responsibilities: — Production company responsibilities: Specify the production company's obligations, including script development, filming schedule, editing, and post-production. — Actor responsibilities: Define the actor's duties, such as attending rehearsals, memorizing scripts, performing on-camera, and cooperating with the production team. 3. Intellectual Property: — Ownership: Clarify the ownership rights of the infomercial, including copyright, trademark, and any other intellectual property rights. — Usage rights: Specify the permitted usage of the infomercial, such as broadcast on television, online platforms, or in trade shows. 4. Compensation and Expenses: — Payment terms: Detail the payment structure, including the actor's fee, possible bonuses, and any other monetary compensation. — Expenses: Specify who will bear the expenses related to the production, including travel, accommodation, wardrobe, and makeup. 5. Termination: — Breach clauses: Define circumstances under which either party can terminate the contract due to a breach of terms or responsibilities. — Notice period: Determine the required duration of notice before terminating the contract. Types of Houston Texas Contracts: 1. Exclusive Contract: The production company engages the actor exclusively for the infomercial and prohibits them from appearing in any other competing advertisements for a specific duration. 2. Non-Exclusive Contract: The actor is allowed to work with other production companies and take on additional advertising projects simultaneously. 3. Fixed-Term Contract: The contract has a specified duration, and the actor's engagement is limited to that period. 4. Rolling Contract: This type of contract automatically renews for successive terms, usually on a monthly or quarterly basis, unless one of the parties terminates it. Conclusion: When it comes to an infomercial production contract in Houston, Texas, a detailed and comprehensive agreement benefits both the television advertising production company and the actor. By incorporating the outlined contract elements and understanding the types of contracts available, successful collaborations can be established, ultimately resulting in a compelling and effective infomercial.
