Celebrities shilling NFTs smell some trouble, as consumer watchdog group Truth in Advertising (TINA) announced it has put 17 high-profile celebrities including Snoop Dogg and Paris Hilton on notice for promoting NFTs without appropriate disclosures.
TINA says it sent letters to celebrities who have promoted NFTs on social media, including Snoop Dogg, Paris Hilton, Gwyneth Paltrow, Eva Longoria, Floyd Mayweather, Tom Brady and DJ Khaled.
The NFT collections that are categorically targeted in the letter are the Bored Ape Yacht Club, World of Women, and Autograph collections.
The group says the letters ask the celebrities to inform them that if they have a material connection to the NFT companies they must clearly disclose the connection clearly as per the guidance provided by Federal Trade Commission (FTC) rules.
As per FTC, celebrities’ connection with NFT projects must be conspicuously disclosed because it can affect the weight or credibility that consumers give the endorsement. The result sometimes can be worse as consumers unknowingly fall prey to NFT scams.
TINA says, “The bottom line is celebrities who promote NFTs generally aren’t helping improve the financial literacy of their fans and followers.”
The consumer group further added that while some celebrities are able to take financial risks due to their massive wealth, many vulnerable consumers don’t hold that luxury.
Previously, in June, TINA legal director Laura Smith had sent letters to the agencies representing Justin Bieber and Reese Witherspoon saying both of them were involved in deceptive marketing.
The letter also said that the pair was engaged in undisclosed endorsements for the NFT collections the InBetweeners and World of Women, respectively.
Witherspoon’s team had responded to this by saying neither she nor her company derives any benefit in return to her partnership with World of Women. They further said that the partnership was created to encourage women to invest in NFTs and without any expectation of deriving any benefits.
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