A consumer watchdog group reminded them that they need to disclose their connection to an NFT collection when they promote it on social media.
The letter from Truth in Advertising to the celebrities also notes that NFTs in general are “rife with deception” and that the promotion of them almost always omits mentioning the risks associated with them:
we have found that celebrity NFT promotions is an area rife with deception, including, but not limited to, a failure to clearly and conspicuously disclose the promoter’s material connection to the endorsed NFT company, as well as the omission of other material information, such as the risks associated with investing in such speculative digital assets, the financial harm that can result from such investments, and the personal benefit the promoter may gain by virtue of the promotion.
The letter goes on to remind the celebrity that material connections to an NFT collection should be disclosed in any social media post.
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