Advertising Securities With Celebrity Endorsers

Allen Matkins
Contact

The last two posts have reviewed some of California’s rules governing the advertising of securities in California.  As we look ahead to general solicitations in Rule 506 offerings, some issuers will undoubtedly be tempted to use celebrity endorsers.  If an advertisement contains any endorsement or recommendation of the securities by any public figure, whether express or implied (for example, by the inclusion of such person’s photograph or name in the advertisement), then full disclosure must be made of any compensation or other benefit given or promised by the issuer or any person associated with the issuer to such person, directly or indirectly.  Rule 260.302.  The disclosure must be made in the same document containing the advertisement or, if such advertisement is presented on radio or television, as a part of the same program, without any intermission or other intervening material.

 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Allen Matkins | Attorney Advertising

Written by:

Allen Matkins
Contact
more
less

Allen Matkins on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide