This seems really wrong to me as FTX/SBF fooled Sequoia, Softbank, the Ontario Teachers Pension fund, and Temasek- some of the most sophisticated investors on planet earth.
Is it really appropriate to hold professional athletes personally liable for endorsing a company which slipped through the due diligence cracks of the above-mentioned firms?
Can you hold them personally liable when FTX was also sponsoring the Warriors, the Miami Heat arena, UC Berkley's "FTX Field," and MLB baseball by placing an FTX logo on umpire uniforms? Will the City of Miami/Dade County be held liable for receiving money to name the "FTX Arena"?
Was FTX actually insolvent at the time their contract was signed? When did FTX start engaging in fraudulent/criminal behavior? Is it reasonable to hold them liable for _future_ acts committed by a firm they endorsed?
From what I’ve read of the article above the paywall, that’s not the argument. The issue is whether they properly disclosed having received payments for endorsements. They’re not being asked to take liability for the endorsed enterprise.
The example given in the article is that Kim Kardashian was fined $250K for not disclosing that she had been paid to endorse a cryptocurrency on Instagram.
In a TV commercial, sure, you assume that celebrities are paid to appear. But on a social media page that blends personal and commercial brands?
Maybe this could be a monetization avenue for Twitter: a #PaidForBy field that doesn't count against your character limit, and links to the approved brand page.
Ah, I see where I missed the point. I was thinking the TV Ads by Steph Curry, Tom Brady, Larry David, etc. Not the follow-up twitter posts adjacent to the TV campaign.
Thanks for clarifying! This will be interesting indeed.
That’s not the argument either. Again, it’s just that they need to disclose the fact of having been paid to promote it, if and when they talk about it in another context.
> Is it really appropriate to hold professional athletes personally liable for endorsing a company which slipped through the due diligence cracks of the above-mentioned firms?
Your question as written says "personally liable for endorsing", so is the answer "yes" because they personally did endorse?
It would certainly be an interesting precedent if that were to happen.
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[ 3.1 ms ] story [ 43.0 ms ] threadIs it really appropriate to hold professional athletes personally liable for endorsing a company which slipped through the due diligence cracks of the above-mentioned firms?
Can you hold them personally liable when FTX was also sponsoring the Warriors, the Miami Heat arena, UC Berkley's "FTX Field," and MLB baseball by placing an FTX logo on umpire uniforms? Will the City of Miami/Dade County be held liable for receiving money to name the "FTX Arena"?
Was FTX actually insolvent at the time their contract was signed? When did FTX start engaging in fraudulent/criminal behavior? Is it reasonable to hold them liable for _future_ acts committed by a firm they endorsed?
Is it reasonable to expect a celebrity to make an advertisement for free? Maybe, maybe not, but this will be an interesting case.
In a TV commercial, sure, you assume that celebrities are paid to appear. But on a social media page that blends personal and commercial brands?
Maybe this could be a monetization avenue for Twitter: a #PaidForBy field that doesn't count against your character limit, and links to the approved brand page.
Thanks for clarifying! This will be interesting indeed.
Why do people keep inventing these strawman?
Your question as written says "personally liable for endorsing", so is the answer "yes" because they personally did endorse?
It would certainly be an interesting precedent if that were to happen.