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Friday, November 8, 2024

Settlement reached over misleading endorsements on Cameo app

State AG
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Attorney General Michelle Henry | Official Website

Attorney General Michelle Henry, alongside 29 other state Attorneys General, has announced a settlement with Baron, Inc., the operator of Cameo, for failing to ensure consumers were aware that videos promoting products were paid endorsements. The settlement mandates Cameo to develop and maintain a comprehensive system to comply with state consumer protection laws and federal endorsement disclosure requirements.

“Cameo is a way for Pennsylvanians and businesses to have personalized access to prominent figures, but consumers deserve to know when a video they’re seeing has been paid for,” Attorney General Henry stated. “We take all violations of consumer protection laws seriously, and applaud Cameo for making necessary changes for a more transparent consumer experience.”

Cameo offers personalized videos from celebrities and other prominent figures. Its Business Cameo service allows companies to pay celebrities to endorse their products. An investigation revealed that Cameo failed to ensure these endorsements were properly disclosed as paid content, violating Federal Trade Commission regulations and Pennsylvania’s consumer protection laws.

As part of the settlement, Cameo will establish programs and policies ensuring compliance with state and federal laws, including the FTC’s Enforcement Guides. Measures include implementing a watermark system for paid advertisements, establishing legal disclosures from all parties involved, monitoring compliance of paid advertisements, and setting up reporting mechanisms for non-compliant videos.

The multistate settlement includes participation from Attorneys General in Florida, Illinois, New York, Texas (which led the effort), Alabama, Alaska, Arkansas, California, Colorado, Georgia, Hawai’i, Idaho, Kentucky, Louisiana, Michigan, Minnesota, Montana, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma,Oregon South Dakota Virginia Washington Wisconsin

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