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The website, features a diverse group of celebrities like former NFL head coach Jon Gruden, British politician Nigel Farange and legendary professional wrestler Mick Foley, reached a settlement with the state after it alleged Cameo failed to provide appropriate disclosures to consumers purchasing these personalized videos for business or product endorsements and failed to provide refunds to users who mistakenly paid for the "Cameo for Business" feature but were not permitted to utilize it, Platkin said.
New Jersey was one of 29 states to settle with Cameo, resolving a multi-state investigation into its compliance with state consumer protection statutes, Platkin said.
“There should be clear lines to distinguish between congratulatory videos to your friends and relatives, and videos that advertise your store or business,” said Platkin. “Moreover, pricing for anything you purchase should be clear and transparent.”
As part of the resolution, Cameo and the states have agreed to an Assurance of Voluntary Compliance which includes several injunctive measures to ensure future compliance with the relevant statutes and guidelines. Measures include:
Transparency and Refunds: Cameo will clearly disclose the process for initiating a request for Cameo for Business videos, as opposed to personal Cameo videos for individuals, such as birthday greetings. Consumers will be provided with automated refunds or instructions for obtaining refunds if their requests are rejected.
Watermarking: All paid Cameo videos will include a watermark indicating they are paid content.
Compliance Statements: Cameo will present clear statements to both celebrities fulfilling requests and users placing requests, outlining the requirement to comply with all relevant laws, including FTC Endorsement Guidelines.
Monitoring and Reporting: Cameo will establish and maintain programs to monitor and review representations and disclosures of Business Cameos. This includes procedures for disqualifying non-compliant users and a reporting mechanism for third parties to report non-compliant Cameos.
Record Keeping: Cameo will retain records of compliance with these programs for five years and provide these records to the settling states upon request.
Cameo was a site that took off during the Covid-19 pandemic, and at one point was valued at more than $1 billion. At its peak, the website had more than 400 employees, but is down to fewer than 50, according to TechCrunch.
The company was originally supposed to pay $600,000 but New York Attorney General Letitia James, one of the states that negotiated a settlement, said it can't afford to pay, so instead settled for $100,000, which will be split between 29 states.
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