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October 29th, 2022
How Brands Split With Celebrity Partners
Advertising Partner Christopher R. Chase is quoted in the article, “How Brands Split With Celebrity Partners” published by The Wall Street Journal. The article discusses the sometimes complicated process of a company separating from a famous business partner in light of Adidas ending its partnership with Kanye West after his anti-Semitic comments. Christopher is quoted saying, “Marketers that have made their decision can often quietly terminate a contract if it is relatively basic, such as those requiring a celebrity to appear at an event or letting brands use someone’s name and likeness for promotional purposes. But cases in which celebrities help design products that bear their names and may even own some equity in the company are more difficult to resolve.” Christopher adds, “If the talent retains some ownership, then you have to stop making the product entirely instead of just taking their name off. This is literally shutting down the factory to some extent.”
Brands rely on morals clauses, which give them the right to terminate a contract when a spokesperson behaves in ways that could be perceived as damaging to the client’s reputation. “The offensive behaviors may be specific to the company in question; alcohol brands commonly include contractual clauses forbidding D.U.I. arrests or drunk and disorderly behavior among their representatives,” said Christopher. He adds, “At the same time, vaguely worded morals clauses can lead to costly and potentially damaging litigation as lawyers argue over whether a spokesperson’s behavior constitutes a violation. While a brand may wish to terminate a contract if a spokesperson’s behavior isn’t to its liking, the celebrity’s legal team often argues that the language should apply only to much more specific violations, such as an arrest.”
Christopher says, “Brands may also try to hedge against potential monetary losses with liquidated damages clauses, which require the spokesperson to repay a certain amount to the company as compensation for failing to fulfill the contract. But these sorts of clauses aren’t particularly common, because language defining the sorts of offenses that justify such action must be very specific to be considered seriously by the courts. Brands should also carefully gauge the risk when they consider signing a spokesperson with a history of erratic or offensive behavior, especially if the person will play an outsize role in their marketing efforts. And that is not just because such behavior could occur again. A brand might struggle to justify canceling a contract over new behavior when a celebrity’s legal team can point to similar instances that predate the deal. He concludes by saying, “Talent lawyers have said, ‘Listen, you’re hiring her because she’s a little out there, so I’m not going to let you terminate because she does something that’s a little out there.’”
Read the full article here.
Other Quoted
The Battle over California’s Bill to Regulate how Insurers Handle Personal Data
Rick Borden is quoted in the Continuing Education of the Bar’s (CEB) DailyNews in an article on the proposed California data privacy law, Senate Bill 354, which would extend greater data privacy protections to the insurance industry. The Insurance Consumer Privacy Protection Act (ICPPA) 2025 would expand the California’s existing insurance-specific privacy law, known as the Insurance Information and Privacy Protection Act (IIPPA).
The article stated, “Rick Borden, a partner with Frankfurt Kurnit Klein & Selz who focuses on data strategy and privacy, said California may be acting too soon because revised regulations and guidance are coming down the pike. A working group at the National Association of Insurance Commissioners (NAIC) is moving ahead with updates to its Model law 672, which each state has either adopted or adopted in substantially similar form. ‘Let them do their stuff,’ Borden said.”
He pointed to the American Property Casualty Insurance Association (APCIA) comment letter, written on behalf of 1,200 companies comprising nearly 60% of the country’s property and casualty insurance market. It also recommended CCPA (California Consumer Privacy Act) regulators to wait.
But the bill’s author Senator Monique Limón and its sponsor, California Insurance Commissioner Richard Lara, are moving forward with the bill.
Mr. Borden also noted “that advertising and marketing is one of the most important areas that California’s proposed new protections could cover.”
“‘Certain advertising is not subject to GLBA [Gramm-Leach-Bliley Act], so already would be subject to CCPA,’ he said. ‘Because you’re not their customer, yet. And this isn’t about a financial transaction with them.’ The revised insurance laws would cover data collection, including for advertising, that is a part of covered insurance relationships.” View article. (Cost-free registration required.)
July 8 2025
In a Data-Obsessed World, Attorneys Welcome Privacy Law Specialization
The Los Angeles Times quotes Daniel M. Goldberg on the California State Bar’s decision to offer a specialization in privacy law. Mr. Goldberg stated that the area of privacy regulation has been exploding with growth, with California on the forefront —driving a need for designating leaders in the field. “‘The law is very complex. But on top of the law being complex, the specialization really requires a level of technical expertise. The law talks all about measures that companies need to take with respect to collection, use, disclosure of data and opting out. But if you don’t understand how the technology works or how the ecosystem works, then it’s an area that would be very, very difficult for you,’ he said.”
“He added, ‘One thing about privacy law is that you also have to be an expert on what’s going on in the news, the latest changes and whether it has to do with ad-tech platforms or AI. If you’re not up with the latest changes, you’re going to fall behind very quickly.’”
Mr. Goldberg emphasized California's pioneering role in privacy regulation. He referenced the state’s passing “the first comprehensive privacy law (the California Privacy Act or CCPA) in 2018, which he said catalyzed the creation of similar laws across other states and established California as the national leader in privacy legislation.” He noted the state had also been a leader in enforcement, citing activity of the Attorney General’s office and the California Privacy Protection Agency’s multiple enforcement actions.
Mr. Goldberg also explained why data privacy is an increasing legal practice at law firms: “‘It’s incredibly lucrative just because it’s such a broad area. It really is a subject matter expertise that goes in so many different subcategories of practices, and so almost every firm now has to have a privacy expert.'" View Article
June 26 2025
Legal, Regulatory Woes Could Mark New Era for Influencers
Hannah E. Taylor is quoted in FTCWatch on class actions against influencers and the brands they represent. Such lawsuits alleging deceptive advertising are now seeking hundreds of millions of dollars in damages. Ms. Taylor discussed this trend and commented on the FTC’s position, the NAD’s increased attention to influencer marketing, the responsibility of brands, and AI tools used to monitor content. View Article. (Subscription required)
June 24 2025
