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FTC Proposed Regulations Concerning Celebrity Endorsements

October 16, 2009 1 Comment »
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The FTC is considering new regulations concerning celebrity endorsements and testimonials.  As some may be aware, the FTC has previously taken a position concerning the authenticity of certain celebrity endorsements and testimonials, so these developments are not entirely uncharted territory.  It is interesting to consider how these regulations could be intepreted with respect to deceased personalities.  One might conclude that if a personality is deceased, how can they endorse much of anything?  In fact, the matter is not that simple and there are certain dynamics in place which can function in a same or similar capacity as an endorsement from a living person.  The extent of the endorsement may also be part of the analysis, such as when an infomercial heavily integrates a given personality, and the strong indication is that the personality uses and recommends the product. 

This is more directed at living celebs and infomercials, but it has some potential applicability in both casting and celeb brand licensing and doesn’t appear to distinguish b/t living or dead celebs.  It might be something you need to consider drafting specific clauses in the license to address, particularly regarding liability of celebrities for false claims.  While no distinction is made between living and deceased personalities, the following are specifically identified:

1.  Celebrity endorsers may be liable for statements about a product which are false or do not represent the celebrity’s own views 
2.  Advertisers should disclose the relationship when the celebrity is pitching a product or service on a talk show or other medium when the it is not obvious that the celebrity is being paid to make that plug.
3.  Advertisers should only use endorsements of celebrities if the advertiser believes that a celebrity subscribes to the views presented.

More information is accessible at the following link:

http://www.lexology.com/library/detail.aspx?g=7c4079f9-330d-4bfc-8b2f-5032ef23a494&utm_source=Lexology%20Daily%20Newsfeed&utm_medium=Email&utm_campaign=Amec%20subscriber%20daily%20feed&utm_content=Lexology%20Daily%20Newsfeed%202009-10-16&utm_term=


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