Resources

Client Alerts, News Articles, Blog Posts, & Multimedia

Everything you need to know about BMD and the industry.

Risks of Using AI-Generated, Implied Celebrity Endorsements in Advertising

Client Alert

Businesses are increasingly using artificial intelligence tools to generate realistic images, videos, and audio depicting celebrities, athletes, influencers, and public figures appearing to endorse products or services. Common examples include AI-generated photos showing celebrities allegedly visiting a restaurant, using a product, receiving professional services, or appearing alongside a business owner. Businesses have also begun using AI-generated voiceovers designed to imitate a celebrity’s voice to make it appear as though the celebrity is narrating, recommending, or endorsing a business or service. While these posts may be intended as humor, marketing, or attention-grabbing content, they can create significant legal and ethical exposure.

Using AI-generated images, videos, or voice simulations to falsely imply a celebrity endorsement may give rise to multiple legal claims, including violations of a celebrity’s right of publicity, false endorsement claims under the Lanham Act, deceptive advertising claims, unfair competition claims, defamation-related allegations, and state consumer protection violations. In many jurisdictions, a person’s name, image, likeness, voice, and persona are commercially protected, particularly when used to promote a business or generate revenue. Even if content is labeled as “AI-generated” or intended as parody, liability risks may still exist depending on how the content is presented and whether consumers could reasonably believe the endorsement is genuine.

These risks increase substantially when the content is used in connection with commercial advertising, paid promotions, websites, social media business pages, sponsored content, or other marketing materials designed to attract customers. Simply put, the more realistic the content appears or sounds, the greater the likelihood that consumers may believe the endorsement is authentic. Businesses should also be aware that social media engagement metrics, comments, reposts, or customer reactions may later be used as evidence that the content caused actual confusion among consumers in any subsequent legal action that may result.

Professional licensing and ethical concerns may also arise for regulated professions. Attorneys, physicians, financial advisors, accountants, and other licensed professionals may face additional scrutiny if AI-generated celebrity endorsements are considered misleading or deceptive advertising under professional conduct rules or industry regulations.

Importantly, disclaimers are not always sufficient to eliminate liability. A small disclaimer stating that content was “AI-generated” may not overcome an otherwise misleading overall impression created by the advertisement. Courts and regulators often evaluate advertising based on the net impression conveyed to consumers rather than isolated disclosures.

As such, businesses and professionals should avoid using AI-generated content that falsely implies:

  • A celebrity or public figure is a customer or client;
  • A celebrity personally visited the business;
  • A celebrity endorses or recommends the business;
  • A celebrity used the business’s products or services;
  • A celebrity narrated or voiced an advertisement for the business; or
  • A relationship, affiliation, sponsorship, or partnership exists when none actually exists.

As AI-generated marketing content becomes increasingly realistic and widespread, businesses should treat synthetic celebrity endorsements and voice simulations with the same level of legal caution as traditional false advertising or unauthorized commercial endorsements. Before posting AI-generated advertising content involving recognizable individuals, businesses should consult legal counsel regarding advertising compliance, intellectual property issues, right of publicity concerns, voice imitation risks, and applicable consumer protection laws.

For questions regarding AI-generated advertising, false endorsement risks, or compliance with applicable advertising and consumer protection laws, contact Attorney Jeff Joseph at jajoseph@bmdllc.com.


Corporate Transparency Act Ruling from the U.S. Supreme Court

The U.S. Supreme Court recently ruled on the enforceability of the Corporate Transparency Act (CTA), lifting an injunction previously imposed by the Fifth Circuit. However, a separate nationwide injunction remains in effect, meaning businesses are still not required to comply with the CTA’s reporting requirements. FinCEN continues to accept voluntary reporting while enforcement remains paused.

Lead Paint Contamination and Resources for Ohio Landlords

Children are exposed to lead-based paint, which was used in most homes until it was banned in the US in 1978 and “can severely damage the brain and central nervous system causing coma, convulsions and even death.” Property owners and landlords should educate themselves on regulations and resources to mitigate their own liability.

Will Student-Athlete Collectives Survive NIL Changes?

By July 2025 the landscape of student-athlete funding will look nothing like the current landscape, so preparing now is a must. If you are a student-athlete, the parent of a student-athlete, a university/college, or “booster”, it behooves you to understand these evolving issues.

Ohio's Recent Rule Changes to Administration of Immunizations, Outpatient Pharmacy Delivery, and Mobile Response Services

The Ohio Board of Pharmacy (“BOP”) and Ohio Department of Mental Health and Addiction Services (“OMHAS”) recently posted notices of Ohio Administrative Code rule changes related to the administration of immunizations (BOP), outpatient pharmacy delivery services (BOP), and mobile response and stabilization services (OMHAS).

HOA Construction Project Do’s and Don’ts

Local regulators can approve new construction, but if a resident contacts their homeowners association there may be trouble. Fences, yard alterations, and backyard decks do not have to be such a hassle and a point of conflict. Find out general Do’s and Don’ts to help HOA residents avoid issues in this article by BMD Partner Scott Heasley.