Hawaii joins in Cameo settlement

Hawaii and 29 other states have agreed to settle with Baon App, Inc., which does business under the name Cameo, over the company’s oversight of policies and practices involving videos made using its mobile application, the state Department of Commerce and Consumer Affairs’ Office of Consumer Protection announced on Wednesday.

Cameo allows users to purchase personalized videos featuring various celebrities. It also books celebrities for promotional business endorsements.

An investigation uncovered potential violations of state consumer protection statutes and paid advertiser disclosure requirements contained in the Federal Trade Commission’s Endorsement Guides.

The states alleged that Cameo failed to provide appropriate disclosures to consumers who purchased personalized video business messages and failed to provide refunds to consumers who intended to use the business Cameo feature but mistakenly signed up for personal-message features (which are less expensive than business Cameos).

Under the settlement, Cameo agreed to create and maintain programs and policies to help ensure that users of its website and apps comply with all applicable state and federal laws. It will further implement a watermark system for paid advertisements; start a system for legal disclosures to and acknowledgements from all celebrities and consumers; monitor paid advertisements for compliance; and establish reporting mechanisms for noncompliant Cameo videos.

“This settlement represents a significant step in ensuring transparency and accountability in digital platforms,” OCP executive director Mana Moriarty said. “By enforcing compliance with state and federal laws, we reaffirm our commitment to safeguarding consumers and promoting fairness in the marketplace.”

The settlement was led by the attorneys general of Florida, Illinois, New York and Texas. It was joined by Alabama, Alaska, Colorado, Connecticut, Delaware, Georgia, Idaho, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nevada, New Mexico, New York, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Utah, Vermont, Virginia, Wisconsin and the Hawaii Office of Consumer Protection.

Michael Tsai covers local and state politics for Spectrum News Hawaii. He can be reached at [email protected].