Cameo, a popular social app allowing fans to purchase personalized video messages from celebrities, has reached a settlement with officials in Pennsylvania and 29 other states following allegations of violating state laws. The app failed to disclose paid videos endorsing products and businesses, leading to potential consumer protection and Federal Trade Commission violations. Launched in 2017, Cameo introduced Business Cameo, allowing companies to pay celebrities for product endorsements. Investigations revealed that Cameo did not provide disclosures to users purchasing these videos or offer refunds to those who mistakenly paid for the feature but were unable to use it.
Under the settlement, Cameo agreed to implement a clear system to comply with state consumer protection laws and federal endorsement disclosure requirements. This includes adding watermarks to indicate paid content in videos, monitoring advertisements for compliance, and establishing reporting mechanisms for non-compliant content. Attorney General Michelle Henry emphasized the importance of transparency in paid endorsements, ensuring that consumers are aware when a video is sponsored. In addition to Pennsylvania, other states involved in the complaint against Cameo were Florida, Illinois, New York, Texas, and more. The settlement aims to prevent future violations of consumer protection laws and improve transparency in influencer marketing on the Cameo app.
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