(WTAJ) — A popular app that lets users get custom videos from celebrities and others has settled a lawsuit with 30 states over paid advertising issues, Attorney General Michelle Henry announced.
Baron Inc., which owns and operates the celebrity app Cameo, has agreed to settle with Pennsylvania and 29 other states that sued it for failing to tell consumers that videos promoting products were paid ads purchased through its service.
As part of the settlement, Cameo will develop an “extensive system” to comply with all state consumer protection laws and federal authorization disclosure requirements.
“Cameo is a way for Pennsylvanians and businesses to gain personal access to celebrities, but consumers have a right to know if the videos they're watching are paid for,” Henry said. “We take all violations of consumer protection laws seriously, and we applaud Cameo for making the necessary changes for a more transparent consumer experience.”
Cameo was found to have failed to disclose paid advertising to consumers, in violation of FTC regulations and numerous state consumer protection laws.
Henry said the result is that people see celebrity videos that appear to be positive reviews, unaware that they're paid endorsements.
Cameo is an online service where you can purchase personalized videos from celebrities and other public figures. The site also allows companies to pay celebrities to promote their products.
This multi-state settlement also includes the attorneys general of Pennsylvania, as well as those of Florida, Illinois, New York, Texas (which is leading the effort), Alabama, Alaska, Arkansas, California, Colorado, Georgia, Hawaii, Idaho, Kentucky, Louisiana, Michigan, Minnesota, Montana, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, South Dakota, Virginia, Washington, and Wisconsin.
