Federal government agencies have condemned the incessant practice of celebrities being paid to endorse and promote companies’ products and services on their social media handles, only for the companies to fail to deliver the advertised goods or render the advertised services, despite receiving payment from customers.
Companies, in a bid to drive sales and patronage, often employ these celebrities as brand ambassadors to promote their products and services.
Some of these celebrities are seen consuming the products they promote to convince and attract their followers by demonstrating the credibility of the companies and their products and services.
However, some celebrities later distance themselves from the companies or products after realising that they are not delivering the promised services, despite having already persuaded some of their fans to patronise them.
Some of these government agencies told Peoples Gazette that such celebrities should ordinarily face the law for misrepresenting products or services to mislead the public into parting with their money, regardless of their intentions, whether good or bad, especially if such celebrities fall for it more than once.
According to the Supreme Court in Afegbai v. A.G Edo State & Anor. (2001) LPELR-193 (SC), the state of mind, knowledge or belief of the celebrity making the promotion is immaterial in determining whether there is a misrepresentation.
Also, going by Sections 61 and 62 of the Companies and Allied Matters Act, a celebrity’s liability is not only to the public but also to the organisation they represent.
In the same vein, Section 320(1)(a) and (b) of the Penal Code criminalises the act of: (a) fraudulently or dishonestly inducing the person so deceived to deliver any property to a person or to consent that any person shall retain any property; (b) intentionally inducing the person so deceived to do or omit to do anything which they would not do or omit to do if they were not so deceived, and which act or omission causes or is likely to cause damage or harm to that person in body, mind, reputation or property.
Celebrities such as David Adeleke, popularly known as Davido; Divine Ikubor, popularly called Rema; and popular actors Williams Uchemba and Kanayo O. Kanayo, among others, have endorsed and advertised a Ponzi scheme company, RackSterli, and products that have allegedly defrauded many people.
Sadly, these celebrities are hardly ever prosecuted, let alone summoned for questioning by relevant authorities, despite several viral video evidence capturing their endorsements of such companies, as well as other videos showing the celebrities apologising for promoting services that have swindled customers.
Spokesperson for the Independent Corrupt Practices and Other Related Offences Commission, Okor Odey, told The Gazette that although the practice is illegal, the facts of each case would determine whether the ICPC would get involved in the prosecution of such celebrities.
Mr Odey said, “I know there was once when Kanayo O. Kanayo had issued a disclaimer about one brand he represented, but I’m not sufficiently informed about those who have also done so for me to know if it requires ICPC’s intervention. I must know the facts of the matter to see where it concerns the ICPC and how it infringed on the provisions of our Act.
“But morally speaking, not based on the law of ICPC, I would want to expect that, for you to say you have found somebody culpable, there’s a clear indication that he is breaching the laws or some form of agreement. What are the agreements that these celebrities have with these firms?”
“Assuming you’re a celebrity, I manufactured something and called you to represent my product because I believe consumers will be persuaded to part with their money if your face and name are associated with it. You should be very wary of appending your name and face to anything you’re not sure of; you should do your own background check. If your name is associated with something that is bad once or twice, perception is everything.”
Mr Odey advised celebrities to ensure that they demand that companies include clauses in their agreements indemnifying them against any backlash before agreeing to become brand ambassadors.