19 celebrities called out by consumer watchdog group for shilling NFTs

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Consumer watchdog group Truth in Advertising (TINA.org) has called on 19 celebrities for allegedly promoting non-fungible tokens (NFTs) without disclosing their ties to the project.

The non-profit consumer advocacy organization said on its website that it “examined celebrities who promote non-fungible tokens (NFTs) on their social media channels”, finding that “this is an area full of fraud.”

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The star-studded list features several actresses including sports stars Floyd Mayweather and Tom Brady, music icons Eminem and Snoop Dogg, and Gwyneth Paltrow, all of whom sent letters urging them to immediately disclose any physical connections with NFT companies. has gone. Or stating the brands they promote:

“The originator often fails to disclose the physical connection to an approved NFT company.”

NFTs are digital certificates stored on the blockchain proving ownership of a digital or physical asset, often an artifact, with many high-profile projects often attracting celebrity endorsement and publicity.

While no actual legal penalties have been attached, TINA.org noted that it sent letters to the celebrities involved on August 8 outlining their complaints and advising them about the potentially harmful effects that NFTs can have on the public. Huh.

One of the group’s primary concerns, mentioned in the letters, is that the potential financial risks associated with investing in such speculative digital assets are not being disclosed.

TINA.org previously sent letters to the legal teams of Justin Bieber and Reese Witherspoon on June 10 without disclosing their connections to projects promoting NFTs on their social media accounts.

Bieber’s legal team responded on July 1, denying any wrongdoing, adding that the post would be updated.

While Witherspoon’s legal team contacted TINA.org on July 20, claiming that the actress is not getting any material benefit from promoting NFTs.

Shilling may violate FTC guidelines

In a blog post on its website, TINA.org wrote that the previously mentioned celebrities may violate Federal Trade Commission (FTC) rules regarding the use of endorsements and testimonials in advertising and requirements of influencers.

Advocacy Group links to the FTC website which outlines that influencers must disclose any physical connections to the brands they are endorsing, and make disclosures clear, clear, specific and within endorsement needed.

So far, there have been no publicized cases of celebrities facing legal penalties for shilling NFTs or crypto.

There are however several class action suits underway, most famously against Elon Musk for supporting Dogecoin, and for Mark Cuban for promoting Voyager crypto products.

Some other celebrities, such as Matt Damon, caused a significant stir when they appeared in an advertisement promoting crypto products, in which the actor was constantly ridiculed and ridiculed for his participation.

Don’t listen to celebs: SEC

In 2017, the US Securities and Exchange Commission (SEC) warned investors about celebrity-backed initial coin offerings in a post on its website.

“Investors should note that celebrity ads may appear unbiased, but may instead be part of a paid promotion.”

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“Celebrities who support investments often do not have sufficient expertise to ensure that investments are fair and in compliance with federal securities laws.”

According to the SEC, it may be illegal for celebrities and influencers to use social media to encourage their followers to buy stocks or other investments if they are of the nature of any compensation paid, directly or indirectly, sources. And do not disclose the amount.