Advertising Law Tool Kit - Tenth Edition | 2022

Venable / 71 Ownership • Generally, the brand should own all campaign materials and anything produced in connection with the campaign, including all contributions made by the talent. One exception may be social media posts, which, except to the extent they contain materials provided by the brand or the brand’s trademarks, might be owned by the talent. • If campaign materials include preexisting material provided by the talent, add a license from the talent to use such material in campaign materials, and the brand’s ownership of campaign materials should be subject to the talent’s ownership of preexisting material. Compliance with Laws • Talent must agree to comply with the FTC Guides Concerning the Use of Endorsements and Testimonials in Advertising and related guidance (“FTC Guides”). • For social media in particular, talent must disclose talent’s relationship in posts using disclosure language, such as “#SPONSORED” or “#AD.” • In its contract with talent, the brand should have a right to require talent to correct or remove information that is not in compliance with the FTC Guides, and the brand should reserve its right to terminate the relationship with talent, if talent doesn’t comply with the FTC Guides and other laws. Loan-Out Letter • If the talent is using a “loan-out” company instead of entering into the agreement directly, then the agreement should include a loan-out letter signed by the talent, acknowledging and agreeing to the terms of the spokesperson agreement signed by the loan-out company. Affidavit • If services include TV commercials that include talent’s endorsement of the brand’s products or services, include a sworn endorsement affidavit to be signed by the talent.