US consumer watchdog group Truth in Advertising (TINA.org) has called out a list of 19 celebrities, including socialite Paris Hilton and pop star Justin Bieber, for shilling NFTs.
TINA alleges the promotion of NFTs on social media by big accounts creates a space that is “rife with deception”.
TINA Warns of ‘Undue Influence’
All 19 celebrities on the list have now received a letter from TINA reminding them that failing to “disclose material connections” on their promotions is in violation of US Federal Trade Commission guidelines.
Only 17 of the letters were sent out this week. Paris Hilton was one of those 17, having been extremely active about her NFT-related ventures of late. However, actor/producer Reese Witherspoon and Justin Bieber, an investor in the inBetweeners NFT project, received their letters in June. Bieber’s legal team has since denied wrongdoing yet vowed to update the posts.
The point TINA is working to make is that celebrities can unduly influence the value of collections in pitching them to impressionable would-be investors.
When it comes to NFTs, some celebrities are able to take financial risks due to their wealth, but many vulnerable consumers don’t have that luxury … Consumers deserve to understand the full picture behind a celebrity endorsement so they can make fully informed decisions on whether or not to invest in NFTs.
Bonnie Patten, executive director, Truth in Advertising
There is immense volatility and financial risk for fans of celebrities who choose to invest in speculative digital assets without knowing all the details, TINA says. While the 19 letters dispatched serve as a gentle reminder, TINA suggests it will take the matter further if celebrities are not more careful about how they promote their NFT interests.
Who Else Got Called Out?
Also on the list of celebrities who received the notice were rapper Snoop Dogg and pop culture icon Madonna, both of whom have been well immersed in the world of NFTs of late. In September last year, Snoop revealed that he owned US$17 million in NFTs when he announced he was the creative mind behind the Cozomo de’ Medici Twitter account, explaining his reasoning in creating an alter ego.
And who can forget Madonna’s recent collaboration with artist Beeple on a collection of NFT ‘soft porn‘? The series featured multiple animated videos of “Madonna-as-mother” in virtual-reality simulations in which she “births” robotic centipedes, butterflies, and even a tree. It was a collection that left nothing to the imagination.
