Kim Kardashian has been fined $AU1.5 million for spruiking crypto security on Instagram without making it clear it was a paid advertisement.
The U.S Securities and Exchange Commission (SEC) is an independent agency that cracks down on influencers that fail to abide by legal standards. Basically, it fined Kardashian and Kardashian has also agreed not to promote crypto for three years.
Kardashian, who has over 330 million followers, has faced pretty major consequences for the advertising error. She hasn’t just been fined.
She’s also lost the $250,000 she was paid to spruik the crypto security in the first place. Plus, she’ll have to pay back interest.
In a statement, SEC Chair, Gary Gensler said, “This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto-asset securities, it doesn’t mean that those investment products are right for all investors.
“We encourage investors to consider an investment’s potential risks and opportunities in light of their own financial goals.
“Ms Kardashian’s case also serves as a reminder to celebrities and others that the law requires them to disclose to the public when and how much they are paid to promote investing in securities,”
