Attorney General Raoul announces multistate settlement with Cameo for violating consumer protection laws
Chicago – Attorney General Kwame Raoul today announced a settlement with Baron App Inc. (Cameo) resolving an investigation into Cameo’s violation of consumer protection laws by not providing appropriate disclosures to consumers who purchased video business messages using the popular personalized video service.
As part of the agreed settlement announced by a bipartisan coalition of 30 attorneys general, Cameo will establish and maintain programs and policies to help ensure its website and mobile applications users comply with all applicable state and federal laws, including the FTC’s Endorsement Guides. Cameo will also implement a watermark system for paid advertisements, implement a system for legal disclosures to and acknowledgements from all celebrities and consumers, monitor paid advertisements for compliance, and establish reporting mechanisms for non-compliant Cameo videos.
“Today’s settlement ensures Cameo is held accountable after the company failed to follow state and federal laws intended to protect consumers,” Raoul said. “I will continue to work with fellow attorneys general to protect Illinoisans and consumers across the nation from fraud and deceptive business practices.”
Raoul and the coalition’s investigation found potential violations of states’ consumer protection statutes and the Federal Trade Commission’s (FTC) Endorsement Guides’ paid advertiser disclosure requirements. Raoul and the coalition allege that Cameo failed to provide appropriate disclosures to consumers purchasing personalized video business messages that an endorsement of a product is a paid endorsement. Additionally, the investigation showed Cameo failed to refund users who paid for the business Cameo feature but mistakenly signed up for the less-expensive personal message Cameos.
Joining Raoul in announcing today’s settlement are the attorneys general of Alabama, Alaska, Arkansas, California, Colorado, Florida, Georgia, Hawaii, Idaho, Kentucky, Louisiana, Michigan, Minnesota, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota, Texas, Virginia Washington and Wisconsin.