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Baron App Inc., owner of the popular celebrity-shoutout-ordering website, agreed to pay $100,000 in penalties to 30 states as part of a settlement agreement reached Wednesday, July 24.
New York will receive $25,000 of that, state Attorney General Letitia James said.
Cameo found itself in hot water after launching its “Business Cameo” service in 2020, allowing companies to hire celebrities to record videos endorsing their services.
According to James’ office, an investigation found that numerous celebrities posted Business Cameos without making the required disclosures in violation of state and federal consumer protection laws.
“For many New Yorkers, cameo videos are fun to watch and share, but consumers deserve to know when they are watching a paid ad or a real review,” James said.
“Videos that are properly labeled as paid ads help consumers make conscious decisions about what to buy, and Cameo was not doing enough to protect viewers.
“Today’s settlement will ensure that Cameo steps up to make sure videos are properly labeled and consumers are not misled.”
Under the settlement, Cameo agreed to establish policies and programs to help ensure users properly disclose all paid endorsements.
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