Consumer watchdog group calls out celebrities for failing to disclose NFT affiliations By BTC Peers

©Reuters. The consumer protection group is calling on celebrities not to disclose NFT affiliations

In an area where celebrity endorsement could sell out an NFT project, consumer advocacy group Truth in Advertising (TINA) has urged celebrities to disclose their NFT connections.

The group revealed in a Monday statement that it had sent letters to several high-profile celebrities promoting NFTs on social media but not disclosing how they benefit from sales of such digital collectibles. Letter recipients include celebrities such as Floyd Mayweather, Eva Longoria, Tom Brady, Snoop Dogg, DJ Khaled, Paris Hilton and eleven others, as well as targeted NFT collections such as Bored Ape Yacht Club, Autograph and World of Women.

Citing longstanding Federal Trade Commission rules, TINA noted that celebrities are required to “clearly and prominently disclose” their material affiliation with the NFT companies they are promoting. Notably, the group had previously attacked Justin Bieber and Reese Witherspoon for their undisclosed support for two NFT projects, inBetweeners and World of Women, respectively.

TINA argues that while celebrities have the means to take significant risks with NFT investing, their followers may not be as buoyant. The group said:

The bottom line is that celebrities who promote NFTs generally don’t help improve the financial literacy of their fans and followers. And while some of these celebrities can take risks because of their vast wealth, many vulnerable consumers don’t have that luxury. Aside from openly supporting some NFT projects, many celebrities have changed their profile pictures on Twitter (NYSE:) to JPEG of their NFTs, subtly leading fans.

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