Bass, Berry & Sims attorney Michael Rivera commented on the recent case the Securities and Exchange Commission (SEC) filed against Kim Kardashian in response to her social media ad endorsing a cryptocurrency. This latest action brought by the SEC against a celebrity endorsement came just weeks before the SEC’s new marketing rule takes effect on November 4, 2022, that requires companies include a disclaimer on any paid testimonials and endorsements, including those distributed via social media.
Michael warned that, in response to the Kardashian case, crypto companies should make sure they “have done everything appropriate” with respect to a crypto coin offering when they pay a celebrity to endorse it.
The full article, “SEC’s Kardashian Case, Marketing Rule Aim to Reveal Paid Ads,” was published by Bloomberg Law on October 7 and is available online.