The consumer advocacy organization Truth in Advertising (TINA.org) summoned Justin Bieber, Paris Hilton and 19 other celebrities associated with NFT promotions. As per reports, the firm found layers of deception in stars actively involved in non-fungible token projects, which they used to advertise on their social media platforms.
This is perhaps a common tactic that creators and NFT sellers adopt to conduct celebrity endorsements to generate considerable hype about their projects. The consumer watchdog sent letters to the top actors and actresses on their hit list to disclose materials linked to NFTs they endorsed.
The letter issued by TINA strictly warns celebrities that if they fail to reveal material links to promoted digital arts, it could majorly impact the public. Often brands take celebrities as mouthpieces for endorsing their digital works at high prices, which leads to losses for investors.
Reply from Bieber’s team, and Witherspoon’s team denied any illegal or scam associated with the digital art pieces they promoted. Investigations have been carried out on 19 other celebrities, including Snoop Dog, Gwyneth Paltrow, and Eminem.
The investigative organization even suspects the brand endorsers of violating FTC guidelines concerning the use of testimonials and endorsement in advertising. This is not the first incident whereby celebrities came under the scanner of investigation departments; earlier, Matt Damon made headlines for promoting crypto products.
The SEC has warned celebrities and influencers using social media to encourage their followers to purchase stocks or other investments. They must disclose the source, nature and amount of any compensation paid directly or indirectly.
Well, in such cases, the celebrities are not only to blame as they lack experience and proper knowledge of whether or not an investment scheme adheres to federal securities laws; they fall prey to such scams.
Let’s wait for TINA’s full investigation into the matter; we hope the truth comes out soon.
