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.
Los Angeles, California is known as the entertainment capital of the world, housing the major film and television industry in the United States. It is a bustling city brimming with creativity and opportunities for actors and production companies alike. One common type of contract in Los Angeles involves television advertising production companies partnering with actors to create captivating infomercials that promote various products or services. These contracts outline the terms and conditions between the production company and the actor to ensure a smooth collaboration and protect the rights of both parties involved. The Los Angeles California Contract between Television Advertising Production Company and Actor to do Infomercial generally covers the following aspects: 1. Scope of Work: This section delineates the project details, specifying the duration of the infomercial, the intended market, and the purpose of the commercial. It outlines the specific role and responsibilities of the actor as well as any additional services required, such as voice-over work or endorsements. 2. Compensation: The contract addresses the monetary compensation for the actor's services. It outlines the payment structure, including any upfront fees, performance-based bonuses, or residual income based on the infomercial's success. The contract may also include reimbursement for expenses incurred during the production process, such as travel or wardrobe costs. 3. Intellectual Property Rights: To protect the interests of both parties, this section clarifies the ownership rights of the infomercial content. It typically states that the production company retains all copyright and intellectual property rights related to the commercial, including the right to edit, distribute, and exploit the infomercial across various media platforms. The actor usually grants the production company the right to use their name, likeness, image, and performance in connection with the infomercial. 4. Non-Disclosure Agreement (NDA): Confidentiality is crucial in the entertainment industry. The NDA clause ensures that the actor maintains confidentiality regarding any trade secrets, proprietary information, or behind-the-scenes details they may come across during the production process. This protects the production company's competitive advantage and prevents unauthorized disclosure of sensitive information. 5. Termination and Suspension: Unforeseen circumstances may require termination or suspension of the contract. This section outlines the conditions under which either party can terminate the agreement, whether due to a breach of contract, force majeure events, or specific performance-related issues. 6. Indemnification and Liability: Both the production company and the actor bear responsibility if any legal issues arise from the production or airing of the infomercial. This section clearly delineates the indemnification obligations, ensuring that either party will cover legal expenses, damages, or claims arising out of their actions during the course of the contract. Different types of Los Angeles California Contracts between Television Advertising Production Company and Actor to do Infomercial could include variations in compensation structures, unique project specifications, or additional clauses specific to certain industries, such as dietary supplements, fitness equipment, or skincare products. However, the aforementioned elements generally form the foundation of most contracts in this field. In conclusion, Los Angeles California Contracts between Television Advertising Production Companies and Actors to do Infomercials are crucial agreements that define the collaboration between the two parties. By outlining project details, compensation terms, intellectual property rights, confidentiality clauses, and termination provisions, these contracts ensure a successful partnership that benefits both the production company and the actor while effectively promoting products or services to a diverse audience.Los Angeles, California is known as the entertainment capital of the world, housing the major film and television industry in the United States. It is a bustling city brimming with creativity and opportunities for actors and production companies alike. One common type of contract in Los Angeles involves television advertising production companies partnering with actors to create captivating infomercials that promote various products or services. These contracts outline the terms and conditions between the production company and the actor to ensure a smooth collaboration and protect the rights of both parties involved. The Los Angeles California Contract between Television Advertising Production Company and Actor to do Infomercial generally covers the following aspects: 1. Scope of Work: This section delineates the project details, specifying the duration of the infomercial, the intended market, and the purpose of the commercial. It outlines the specific role and responsibilities of the actor as well as any additional services required, such as voice-over work or endorsements. 2. Compensation: The contract addresses the monetary compensation for the actor's services. It outlines the payment structure, including any upfront fees, performance-based bonuses, or residual income based on the infomercial's success. The contract may also include reimbursement for expenses incurred during the production process, such as travel or wardrobe costs. 3. Intellectual Property Rights: To protect the interests of both parties, this section clarifies the ownership rights of the infomercial content. It typically states that the production company retains all copyright and intellectual property rights related to the commercial, including the right to edit, distribute, and exploit the infomercial across various media platforms. The actor usually grants the production company the right to use their name, likeness, image, and performance in connection with the infomercial. 4. Non-Disclosure Agreement (NDA): Confidentiality is crucial in the entertainment industry. The NDA clause ensures that the actor maintains confidentiality regarding any trade secrets, proprietary information, or behind-the-scenes details they may come across during the production process. This protects the production company's competitive advantage and prevents unauthorized disclosure of sensitive information. 5. Termination and Suspension: Unforeseen circumstances may require termination or suspension of the contract. This section outlines the conditions under which either party can terminate the agreement, whether due to a breach of contract, force majeure events, or specific performance-related issues. 6. Indemnification and Liability: Both the production company and the actor bear responsibility if any legal issues arise from the production or airing of the infomercial. This section clearly delineates the indemnification obligations, ensuring that either party will cover legal expenses, damages, or claims arising out of their actions during the course of the contract. Different types of Los Angeles California Contracts between Television Advertising Production Company and Actor to do Infomercial could include variations in compensation structures, unique project specifications, or additional clauses specific to certain industries, such as dietary supplements, fitness equipment, or skincare products. However, the aforementioned elements generally form the foundation of most contracts in this field. In conclusion, Los Angeles California Contracts between Television Advertising Production Companies and Actors to do Infomercials are crucial agreements that define the collaboration between the two parties. By outlining project details, compensation terms, intellectual property rights, confidentiality clauses, and termination provisions, these contracts ensure a successful partnership that benefits both the production company and the actor while effectively promoting products or services to a diverse audience.
