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  • Writer's pictureThe Legal Digest

Kim Kardashian fined over $1m for Failing to Disclose Crypto Promotion

Is it safe to post promotions on social media?

It depends on a number of factors, but if you are paid to promote products such as cryptocurrency and that sways people to invest in a high-risk product that could attract the attention of the regulators for not disclosing how much you were paid to post.

Kim Kardashian is the latest celebrity fined by the US Securities and Exchange Commission after she encouraged users to invest in EthereumMax, on Instagram and failed to disclose that she was paid $250,000 to publish her Instagram post.

When celebrities or influencers promote investments or products online, it doesn't mean that it is right for every customer especially when it comes to investments that carry a high risk and not a lot of information on the warnings.

Social media shouldn't replace the need for obtaining expert advice on investment opportunities which is why brands usually look to pair with influencers that understand their demographics and align well with their products thereby ensuring that customers can make informed decisions.

It's not just a warning sign for influencers and celebrities with a large following to disclose how much they are paid to post but also that when it comes to investments, celebrities and influencers can't replace tailored expert financial advice on your specific financial goals.


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