Generally, endorsement deals, whereby an advertiser engages a recognizable performer or online influencer to promote the advertiser’s products or services, have proven to be a win-win for advertisers and talent alike. Engaging a celebrity performer or influencer (collectively referred to hereinafter as “talent”) to promote a product or service allows an advertiser to tap into the talent’s following and benefit from the talent’s influence. For talent, endorsement deals offer a very lucrative stream of income. The success of any endorsement campaign hinges on the reputation of the talent. Assuming talent maintains his or her reputation throughout the engagement, both parties stand to benefit from the amount of exposure and profit that can be realized from a successful campaign. While the foregoing win-win scenario is common, endorsement deals involve real people susceptible to making mistakes, some of which can quickly result in a tarnished reputation for both talent and the brand—especially given today’s 24/7 news culture, where social media is king and information is shared at the speed of light.
So, what happens when a talent’s reputation tanks and poses a risk to the reputation of the brand? That’s where the morals clause comes in. A morals clause (also sometimes referred to as a morality clause) allows an advertiser to quickly disassociate from the talent in the event the talent commits an act or becomes involved in a scenario that is viewed by the public as morally unacceptable.