It’s just under two years since I wrote about celebrity endorsements being under the microscope with Mike King’s defection from NZ Pork. Two years on and celebrity endorsements are in the news again, this time with a view to holding the celebrity accountable for claims they make – especially relating to finance company products.

In the wake of the failure of literally dozens of finance companies over recent years NZ’s Commerce Minister has asked officials to explore options that include “the possibility of celebrities being liable to investors for untrue statements” which would make the celebrity liable in the same way investment experts are.

In an article in the New Zealand Herald, when asked if he’d have fronted advertisements for Hanover Finance, which collapsed owing around 16,000 investors more than $500 million, former news anchor Richard Long said had such a regime been in force when he was asked to front Hanover’s advertising he would not have done it and said he believed celebrities would now shy away from such work. Read the rest of this entry »