Consumer advocacy group Truth in Advertising sent letters to 19 celebrities over concerns that they are promoting NFTs while hiding their financial rewards.
Non-profit consumer advocacy organization Truth in Advertising (TINA) published letters recently sent to 19 celebrities regarding the promotion of non-fungible tokens (NFTs) on social media. The “star list” includes boxer Floyd Mayweather (Floyd Mayweather), musical artists Timbaland, Eminem and Snoop Dogg (Snoop Dog), as well as singers and actresses Madonna, Gwyneth Paltrow (Gwyneth Paltrow), Paris Hilton (Paris Hilton) and Eva Longoria (Eva Longoria).
TINA claims that the NFT industry is “rife with deceit”, as when promoting collectible tokens, famous people often do not disclose the information that they have received material rewards from the NFT issuer. The consumer advocacy group is concerned that celebrity statements about NFTs could have a detrimental effect on the public, as they lack warnings about the possible financial risks associated with investing in speculative digital assets.
Earlier, TINA sent similar notices to the lawyers of musician Justin Bieber and actress Reese Witherspoon. Justin Bieber’s lawyers deny any wrongdoing, and Reese Witherspoon’s managers said the actress is not financially benefiting from the NFT promotion. According to TINA, the celebrities in question may be in violation of the US Federal Trade Commission (FTC) rules regarding the promotion of products and services. The FTC requires influencers to clearly and unequivocally disclose any material relationship with endorsed brands.
Recently, British actor Anthony Hopkins also took his first steps into the NFT world, turning to Snoop Dogg and Reese Witherspoon for advice on which collectible tokens he should buy, as they already have experience in this industry. A few months ago, the UK Financial Conduct Authority (FCA) questioned the legality of NFTs and criticized celebrities investing in collectible tokens.
Source: Bits
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