Attorney General Platkin Announces Settlement with Video Sharing Service
Assurance of Voluntary Compliance
TRENTON — Attorney General Matthew J. Platkin joined 29 other Attorneys General in announcing a settlement resolving potential consumer protection and Federal Trade Commission (“FTC”) Endorsement Guideline violations by Baron App, which does business as Cameo, a platform for hiring celebrities to create personalized video messages.
The states allege that Cameo failed to provide appropriate disclosures to consumers purchasing these personalized videos for business or product endorsements and failed to provide refunds to users who mistakenly paid for the Cameo for Business feature but were not permitted to utilize it. The settlement resolves a multistate investigation into Cameo’s compliance with state consumer protection statutes and the FTC Endorsement Guidelines over paid advertiser disclosure requirements.
“There should be clear lines to distinguish between congratulatory videos to your friends and relatives, and videos that advertise your store or business,” said Attorney General Platkin. “Moreover, pricing for anything you purchase should be clear and transparent.”
“When you pay money for a personalized service, whether it is for a relative’s birthday or to promote a business, you should know exactly what you are purchasing,” said Cari Fais, Acting Director of the Division of Consumer Affairs. “Your audience also needs to know that what they are viewing is truthful and not misleading.”
As part of the resolution, Cameo and the states have agreed to an Assurance of Voluntary Compliance (“AVC”), which includes several injunctive measures to ensure future compliance with the relevant statutes and guidelines. Some of these measures include:
Transparency and Refunds: Cameo will clearly disclose the process for initiating a request for Cameo for Business videos, as opposed to personal Cameo videos for individuals, such as birthday greetings. Consumers will be provided with automated refunds or instructions for obtaining refunds if their requests are rejected.
Watermarking: All paid Cameo videos will include a watermark indicating they are paid content.
Compliance Statements: Cameo will present clear statements to both celebrities fulfilling requests and users placing requests, outlining the requirement to comply with all relevant laws, including FTC Endorsement Guidelines.
Monitoring and Reporting: Cameo will establish and maintain programs to monitor and review representations and disclosures of Business Cameos. This includes procedures for disqualifying non-compliant users and a reporting mechanism for third parties to report non-compliant Cameos.
Record Keeping: Cameo will retain records of compliance with these programs for five years and provide these records to the settling states upon request.
New Jersey was a member of the multistate coalition for this matter, led by Florida, Illinois, New York, and Texas, and was also joined by Alabama, Alaska, Arkansas, California, Colorado, Georgia, Hawaii, Idaho, Kentucky, Louisiana, Michigan, Minnesota, Montana, Nevada, New Hampshire, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota, Virginia, Washington and Wisconsin.
The matter was handled on the behalf of New Jersey by Deputy Attorney General Deepta Janardhan in the Division of Law’s Consumer Fraud Prosecution Section in the Affirmative Civil Enforcement Practice Group, under the supervision of Section Chief Jesse J. Sierant and Assistant Attorney General Jennifer S. Schiefelbein.
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