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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.


The Ohio Board of Pharmacy’s Latest Batch of Rules: What Providers Should Know

The Ohio Board of Pharmacy released several new rules and proposed amendments to existing rules over the past month that will significantly impact pharmacy operations. Topics range from updates to the Terminal Distributor of Dangerous Drugs license to mobile clinics to mandatory rest breaks for pharmacists of outpatient pharmacies. A summary of the proposed changes is below, along with instructions for commenting on the rules. Your BMD healthcare attorney can help write comment letters and submit the comments on your behalf as well.

Employee or Independent Contractor? New Guidance Issued by the Department of Labor

On January 9, 2024, the U.S. Department of Labor (DOL) issued its long-awaited final rule — effective March 11, 2024 — revising its prior interpretation of worker classifications under the federal Fair Labor Standards Act (FLSA). The new final rule rescinds the standard previously established in 2021, in turn, shifting the analysis of whether a worker is an employee (versus an independent contractor) of a business from a more streamlined “economic reality” test to a more complex “totality of the circumstances” standard.

Increased Medicaid Rates to Take Effect This Month for Ohio Providers

As required by House Bill 33, Ohio’s 2024-2025 operating budget bill, reimbursement rates paid by the Ohio Department of Medicaid will increase for a wide range of providers starting on January 1, 2024.

Corporate Transparency Act Update

The Corporate Transparency Act (“CTA”), with an effective date of January 1, 2024, is set to impose strict reporting guidelines on business owners throughout the country. The following provides a brief update on two aspects of the CTA ahead of its effectiveness next week.

The Second Wave of UnitedHealthcare's Prior Authorization Cuts Started in November

In August 2023, UnitedHealthcare released its plan to eliminate roughly one-fifth of its then-current prior authorization requirements. The first round of prior authorization cuts took effect on September 1, 2023. In that round, UnitedHealthcare eliminated the necessity for some prior authorizations for UnitedHealthcare Medicare Advantage, UnitedHealthcare commercial, UnitedHealthcare Oxford and UnitedHealthcare Individual Exchange plan members. The second and final round of prior authorization cuts began on November 1, 2023. The November 2023 Prior Authorization Cuts apply to the same plans as well as community plans (i.e., Medicaid managed care plans).