Once worth $1B, this company now struggles to pay fine
Once valued at over $1 billion, video-sharing platform Cameo is now grappling with financial difficulties and is unable to pay a $600,000 fine. The company's financial woes were revealed in a settlement agreement made public by the office of New York Attorney General. The document states that Cameo failed to comply with FTC rules regarding celebrity product endorsements and should pay for its violations. However, the company's financial statements reveal that it cannot afford to pay the full fine amount.
States agree to reduced fine payment amid Cameo's financial struggles
Due to Cameo's financial status, New York and the other 29 states involved in the investigation have agreed to accept a reduced payment of $100,000. The settlement agreement stipulates that "upon receipt of $100,000 from Cameo, the Settling States shall suspend the remaining amount due." This decision comes after additional representations were made about Cameo's financial status in October 2023.
Cameo to implement compliance measures amid FTC violations
In addition to the reduced fine payment, Cameo is required to implement features for future compliance. These measures include watermarks indicating videos booked through Cameo, requirements for brands and celebrities to acknowledge endorsement regulations, and ongoing monitoring for noncompliance. This move comes as part of the settlement agreement following the company's failure to comply with Federal Trade Commission rules regarding celebrity product endorsements.
Cameo's struggles continue, faces layoffs and celebrity shortage
Cameo has faced significant challenges since reaching its peak valuation in 2021. The company has struggled to attract many A-list celebrities to its platform and saw several rounds of layoffs in 2022 and 2023. These difficulties have compounded the company's financial struggles, as revealed in the recent settlement agreement. Most recently, Cameo made headlines as a source of income for American politician George Santos after his expulsion from the House of Representatives.
