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Non-fungible tokens (NFTs) have become very popular among celebrities. Some big names from Snoop Dogg, Madonna, Justin Bieber, etc., have all shown interest in the crypto space. However, these celebrities have been called out for shilling NFTs and failing to advise their followers about the underlying risks.
Celebrities called out for shilling NFTs
A report by a consumer watchdog group, Truth in Advertising, has called out 19 celebrities for promoting NFTs without disclosing their association with those assets. The group said that celebrities promoting NFTs on their social media platforms did so despite fully knowing those assets were risky.
Some celebrities mentioned by the consumer group include Floyd Mayweather, Tom Brady, Snoop Dogg, Eminem, and several others. The group has sent letters to these celebrities urging them to disclose the benefits of endorsing NFT companies and brands.
In the letters, TINA.org aired grievances advising celebrities of the harm caused by shilling NFTs to the public. One of the main concerns aired by the group is the financial risks linked to investing in speculative digital assets.
Your capital is at risk.
The legal team of Justin Bieber responded to the letter sent by TINA.org regarding the promotion of NFTs on the singer’s social media platforms. The legal team denied any wrongdoing adding that the posts would be updated to reveal Bieber’s connection with the NFTs.
Shilling NFTs violated FTC guidelines
TINA.org has also said that the actions taken by these celebrities to shill NFTs violated the guidelines of the Federal Trade Commission (FTC). The FTC has been adamant ion enforcing the Use of Endorsements and Testimonials in Advertising and ensuring influencers will meet all the requirements.
TINA.org has also provided a link to the FTC website that outlines how influencers need to disclose their material connections with the groups they are promoting. They should also ensure they provide the needed disclosures and are clear, simple, and within that endorsement.
There are no precise details of the celebrities facing legal penalties for shilling NFTs or other crypto assets. Several class action lawsuits are underway, with one of the most popularized being Elon Musk’s endorsement of Dogecoin and Mark Cuban’s support of Voyager cryptocurrency products.
Several other celebrities, such as Matt Damon, have also triggered debate after he appeared in an advertisement promoting cryptocurrency products. However, the actor was mocked and ridiculed for his involvement.
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