Attorney General John M. Formella announces a 30-state settlement with Baron App, Inc., d/b/a Cameo, resolving the states’ attorneys general investigation into Cameo’s oversight of policies and practices regarding videos made using their app. Cameo is an internet-based business that allows consumers to purchase customized videos recorded by celebrities. Cameo also allows businesses to book celebrities to record video endorsements of their products and services. The investigation found potential violations of states’ consumer protection statutes as well as the Federal Trade Commission’s (FTC) disclosure requirements for paid endorsements. The states allege that Cameo failed to provide disclosures to consumers purchasing personalized business endorsement messages and failed to provide refunds to users who paid to use the business Cameo feature but mistakenly signed up for personal message Cameos, which are less expensive than business Cameos.
"Today's settlement with Cameo marks a significant step forward in protecting consumers and ensuring transparency in online endorsements. Through this agreement, Cameo has committed to reforms, including the implementation of stringent disclosure measures and enhanced monitoring systems. These measures are crucial in safeguarding consumers from deceptive practices and upholding the integrity of online commerce. We will continue to vigilantly enforce consumer protection laws to maintain a fair marketplace for all," said Attorney General Formella.
As part of the agreed settlement, Cameo will establish and maintain programs and policies to help ensure that its website and mobile applications users comply with all applicable state and federal laws including the FTC’s Endorsement Guides. Cameo will 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.
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