Celebrity endorsements are “potentially unlawful” and in violation of federal securities laws, according to a statement from the U.S. Securities and Commission (SEC)
Endorsements are legally obliged to disclose both the source and the amount of compensation received for such and lack thereof constitutes a law violation.
“These endorsements may be unlawful if they do not disclose the nature, source, and amount of any compensation paid, directly or indirectly, by the company in exchange for the endorsement.” The SEC’s statement reads.
Amongst the celebrities who publicly endorsed ICOs are Floyd Mayweather, Jamie Foxx and Luis Suarez.Tags: Celebrities, ICO
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