Celebs to play safe as norms rolled out for crypto ads

economictimes.indiatimes.com:

Mumbai: Days after the Advertising Standards Council of India (ASCI) rolled out guidelines for the advertising of virtual digital assets, celebrities have started inserting indemnity clauses in their contracts with crypto exchanges. These celebrities have hired lawyers who are drawing out these indemnity contracts where any future liability or other penalty would be taken care of by the exchange. The indemnity clauses seek to insulate the celebrities from any future or even reputational risks, legal experts said.

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“Many celebrities and influencers who are promoting crypto assets or NFTs (non-fungible tokens) have now started ensuring that there are strong indemnity clauses in their contracts with cryptocurrency exchanges. The fear is that they could face claims, damages, including reputational risks going ahead due to the recent guidelines around advertising and legal ambiguity surrounding digital assets,” said Priyanka Sinha, partner at law firm A&P Partners. In the US, celebrities like Kim Kardashian and Floyd Mayweather have been sued by crypto investors for allegedly making misleading claims. “The indemnity clauses cover breaches of contractual provisions, third-party claims and sometimes the obligation to defend all litigations including against the talent … Every contract involving virtual digital assets, including endorsements by celebrities include similar protective clauses for celebrities,” said Chandrima Mitra, partner, DSK Legal, a law firm. A top Bollywood star who endorses NFTs, for instance, has drawn up a new contract to insulate him from any future litigation. Under the terms, the crypto