Consumer watchdog group Truth in Advertising (TINA.org) called out 19 celebrities who illegally advertised for NFTs but more details about their role in projects are yet to be revealed. This group said it conducted an investigation of these people and found many frauds in their promotions.
Among these 19 people are many famous names such as sports superstars Floyd Mayweather and Tom Brady; rappers Eminem and Snoop Dog; actress Gwyneth Paltrow, singer Justin Bieber; Paris Hilton, etc. TINA sent letters to all of them, asking them to clarify their role in NFT projects or brands they promoted. According to TINA, the fact that celebs promote without understanding the project can cause a lot of financial risks to the community, who strongly believe in their idols.
After receiving the letter from TINA, Justin Bieber’s legal team denied all allegations but promised to update social media posts. Meanwhile, Witherspoon’s team said that the actress did not get any benefits from NFT advertising. TINA stated that these celebs most likely violated Federal Trade Commission (FTC) rules regarding the Use of Endorsements and Testimonials in Advertising and the requirements for influencers. Elon Musk and Mark Cuban, popular names in the crypto space, are also facing class action lawsuits for promoting Dogecoin and Voyager.
In 2017, the US Securities and Exchange Commission (SEC) warned investors about ICOs promoted by famous people. According to the SEC, celebs often don’t have sufficient expertise to make sure the investment is appropriate and compliant with federal securities laws. It’s possible that they were paid for these ads.
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