New York Attorney General Letitia James announced a bipartisan, 30-state settlement with Baron App Inc., the owner of Cameo, for failing to ensure consumers knew that videos promoting products were paid endorsements. Under the settlement agreement, Cameo must pay $100,000 in penalties, including $25,000 to New York state, and implement programs to ensure all paid advertisements are properly labeled.
In 2020, Cameo launched Business Cameo, allowing companies to pay celebrities to record videos endorsing their products. The Office of the Attorney General (OAG) found that Cameo did not ensure these videos were disclosed as paid endorsements, violating endorsement rules issued by the Federal Trade Commission (FTC) and New York’s consumer protection laws.
“For many New Yorkers, cameo videos are fun to watch and share, but consumers deserve to know when they are watching a paid ad or a real review,” said Attorney General James. “Videos that are properly labeled as paid ads help consumers make conscious decisions about what to buy, and Cameo was not doing enough to protect viewers. Today’s settlement will ensure that Cameo steps up to make sure videos are properly labeled and consumers are not misled.”
The settlement requires Cameo to set up policies and programs ensuring users disclose all paid endorsements. This includes maintaining a watermark system indicating a video was booked through Cameo, requiring acknowledgments from brands and celebrities about compliance with endorsement rules, creating a reporting system, and monitoring for noncompliance.
Joining Attorney General James in leading this multistate settlement are the attorneys general of Florida, Illinois, and Texas. States participating in this settlement include Alabama, Alaska, Arkansas, California, Colorado, Georgia, Hawaii, Idaho, Kentucky, Louisiana, Michigan, Minnesota, Montana, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Ohio Oklahoma Oregon Pennsylvania South Dakota Virginia Washington Wisconsin
This is the latest action taken by Attorney General James against deceptive practices. Last month she secured $700 million from Johnson & Johnson for deceptively marketing products containing talcum powder. Additionally she reached settlements with three large mobile phone carriers over deceptive advertising practices and won a federal jury trial against Quincy Bioscience for fraudulent statements about their supplement Prevagen. Last summer she secured $1.6 million from an online apartment finder for defrauding renters by publishing unverified listings.
This matter was handled by Assistant Attorney General Jina John and former Assistant Attorneys General Noah Stein and Ezra Sternstein of the Bureau of Internet and Technology under Bureau Chief Kim Berger Deputy Bureau Chief Clark Russell The Bureau of Internet Technology is part Division Economic Justice led Chief Deputy Attorney General Chris D’Angelo overseen First Deputy Attorney General Jennifer Levy