Cameo, the platform known for celebrity video messages, agrees to a $100,000 settlement with 30 state Attorneys General over undisclosed paid endorsements.

Kelley Dyre reports that the company agreed to pay $100,000 to settle allegations related to its “Business Cameo” service, launched in 2020. 

This service, which allows companies to commission celebrity endorsement videos, allegedly failed to ensure proper disclosure of paid content.

Key points of the settlement include:

1. Implementation of a watermark system to indicate paid content
2. Mandatory acknowledgment of endorsement rules by users and celebrities
3. Establishment of monitoring procedures for video compliance
4. Creation of a third-party reporting system for non-compliant content

These measures address concerns about “clear and conspicuous” disclosure of material connections between endorsers and advertisers, as required by the Federal Trade Commission’s Endorsement Guides and state laws.

While Cameo’s platform is unique, the settlement’s principles apply widely to influencer campaigns across various media. 

Notably, the initial $600,000 fine was reduced due to Cameo’s reported financial constraints, highlighting potential financial risks for platforms in this space.

This regulatory action coincides with increased public scrutiny of celebrity endorsements, exemplified by the recent controversy involving Jimmy Kimmel’s use of George Santos’ Cameo videos on his late-night show.