Truth in Advertising (TINA) has sent notification letters to over a dozen celebrities who promoted non-fungible tokens (NFTs) on social media platforms. With names including Paris Hilton, Gwyneth Paltrow, Tom Brady and Eva Longoria, the non-profit organization informed these celebrities that they must follow Federal Trade Commission (FTC) rules and reveal any material connection they have to the NFT companies they promote.
These letters come off the back of two earlier letters sent to Justin Bieber and Reese Witherspoon for undisclosed endorsements of NFT companies. While the websites of the NFT issuers highlight the partnerships, neither celebrity publicly revealed their association with the NFT companies in their social media posts. Both celebrities denied breaking laws, and Witherspoon said her relationship was not intended for financial gain.
FTC regulation states that if an endorser has a “material connection to a brand”, it must be disclosed as this can affect how consumers perceive their promotion and the product in question. Thus, businesses must be vigilant to ensure the influencers they partner with comply with the law.
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