More than a dozen celebrities have been warned by a consumer watchdog group for failing to reveal if they are making money off of their NFT collections.
If they don't disclose a potential relationship with the NFTs they're shilling, they could be, according to the Truth in Advertising.
The FTC has issued warnings about cryptocurrencies in general, but it's been quiet about NFTs in particular, with groups like TINA taking up the mantle.
Celebrity who promote NFTs aren't helping improve the financial literacy of their fans and followers.
Floyd Mayweather, a UFC fighter, and DJ Khaled, a recording artist, were both charged by the Securities and Exchange Commission for failing to disclose their financial ties, and were among the recipients.
"If these celebrities have a material connection to the NFT companies they are promoting, that connection needs to be clearly and conspicuously disclosed in the endorsement as required by FTC law."
The organization notes that the celebrity shilling of NFTs is suspect because they are subject to increasingly volatile market changes.
The World of Women and in Betweeners NFT collections were endorsed by the organization, but they sent letters to Reese and Justin saying they didn't know about their relationships. The lawyers for the celebrities said there was no wrongdoing on their part.
In the meantime, watchdog groups will continue to do what they do best.
TINA.org sends notification letters to celebrities who promote non-profits.
They are turning expensive college books into NFTs now.
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