On October 3, 2022, the Securities Exchange Commission (SEC) issued a press release announcing charges against influencer/businesswoman Kim Kardashian for promoting a cryptocurrency on social media without disclosing the exact amount that she was compensated for the promotion (which is required by SEC regulations). As a result of this unlawful touting, Kim agreed to pay the SEC a fine of $1.26 million. To read the full SEC release, click here.
The Kardashians are once again providing valuable business lessons to influencers. And while they can probably afford to pay large fines, many influencers cannot. For my thoughts about this story and about compliance with federal regulations (like those from the SEC and FTC), view this Instagram reel or this TikTok.
For more information on influencer law, you can click the Digital Influencers tag on the right to read more blog posts. If you’re an influencer who needs help with your business, email us at info@jllaw.net.
Image credit: Shutterstock.com
