TINA.org calls out 19 celebrities for wrongful promotion of NFTs

Among the list of celebrities included Floyd Mayweather, Tom Brady, Eminem, Snoop Dog and Gwyneth Paltrow

Information from Cointelegraph mentioned that one of the group’s primary concerns stated in the letters is the possible financial impact associated with risks due to investing in speculative digital assets
Information from Cointelegraph mentioned that one of the group’s primary concerns stated in the letters is the possible financial impact associated with risks due to investing in speculative digital assets

Consumer watchdog group Truth in Advertising (TINA.org) has called out 19 celebrities on the grounds of promoting non-fungible tokens (NFTs) without the disclosure of their connection to the projects, as stated by Cointelegraph.

According to Cointelegraph, going by the non-profit consumer advocacy organisation’s website, they investigated celebrities who promote non-fungible tokens (NFTs) on their social media channels. Among the list of celebrities included Floyd Mayweather, Tom Brady, Eminem, Snoop Dog, and Gwyneth Paltrow, to whom letters have been sent, urging them to disclose any material connections they have to NFT companies or brands which have been promoted by them. NFTs are blockchain based digital certificates which provide ownership of a digital or physical asset, often an artwork, with many high-profile projects attracting celebrity endorsement and adoption. While no legal implications have taken place, TINA.org said that it sent letters to celebrities involved on August 8, outlining their grievances and advising them on the potentially harmful effects shilling NFTs can have on the public.

Information from Cointelegraph mentioned that one of the group’s primary concerns stated in the letters is the possible financial impact associated with risks due to investing in speculative digital assets, and them not being disclosed. TINA.org sent letters to Justin Bieber and Reese Witherspoon’s legal teams on June 10, on the account of promoting NFTs on their social media accounts without disclosure of their connection to the projects. Through a TINA.org website’s blog post, the group stated that the celebrities could be violating the Federal Trade Commission (FTC) rules, in terms of use of endorsements and testimonials in advertising and the requirements for influencers. Links between the advocacy group and FTC website has outlined that influencers must disclose any material connections to brands being endorsed. 

Furthermore, Cointelegraph’s data noted that in 2017, the US Securities and Exchange Commission (SEC) warned investors about celebrity-backed initial coin offerings through a post on their website. The SEC further mentioned that celebrities using social media to ask followers to purchase stocks or other investments could be unlawful if their nature, source and amount of compensation paid, is not disclosed.

(With insights from Cointelegraph)

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