Consumer watchdog group calls out celebrities for failing to disclose NFT affiliations
2022.08.10 00:09
Consumer watchdog group calls out celebrities for failing to disclose NFT affiliations
In a space where celebrity endorsement could push an NFT project to sell out, consumer watchdog group Truth in Advertising (TINA) has called on celebrities to disclose their NFT connections.
The group revealed in a Monday notice that it had sent letters to several high-profile celebrities who promote NFTs on social media but fail to disclose how they benefit from the sales of such digital collectibles. The recipients of the letters include prominent figures like Floyd Mayweather, Eva Longoria, Tom Brady, Snoop Dogg, DJ Khaled, Paris Hilton, and eleven others, as well as target NFT collections like Bored Ape Yacht Club, Autograph, and World of Women.
Citing longstanding Federal Trade Commission rules, TINA noted that celebrities are required to “clearly and conspicuously disclose” their material connection with the NFT companies they are promoting. Notably, the group had previously tackled Justin Bieber and Reese Witherspoon for their undisclosed endorsements for two NFT projects, inBetweeners and World of Women, respectively.
TINA argues that while celebrities have the means to take significant risks with NFT investments, their followers may not be so buoyant. The group said:
The bottom line is celebrities who promote NFTs generally aren’t helping improve the financial literacy of their fans and followers. And while some of these celebrities are able to take risks due to their massive wealth, many vulnerable consumers don’t have that luxury.
Apart from openly endorsing some NFT projects, many celebrities have changed their Twitter (NYSE:TWTR) profile pictures to the JPEG of their NFTs, thereby subtly leading fans on.
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