It is not unusual for brands to look for celebrity endorsements. Often, having recognizable names and faces associated with a certain product can help boost sales. As a result, when a company creates a contract with a representative for well-known individuals to endorse a product and that representative breaches the contract, problems could arise.
California readers may be interested in a lawsuit filed by FabFitFun against JFF Entertainment, a company that apparently represents celebrities. Reportedly, the two companies had entered into a contract that would have JFF Entertainment provide social media posts from celebrities endorsing FabFitFun. The company provided JFF with over $80,000 upfront, which was half the fee associated with the deal. FabFitFun believed that it was paying to have Sarah Hyland, Ashley Benson and Cara Delevingne endorse the products on social media.
Apparently, at least two of these actresses were not aware that they were supposed to work with the company. As a result, FabFitFun believes that JFF Entertainment breached the contract by not providing the agreed-upon celebrity endorsements. The report noted that the lawsuit was against JFF Entertainment only and not the actresses. A representative for JFF claimed that they were unaware of any lawsuit.
When a party breaches a contract, considerable losses can be suffered by the company that stuck to the terms of the agreement. As this case shows, it may be necessary for California companies to take legal action if all parties involved in an agreement do not abide by the terms. Handling contract disputes can be complex and contentious, so companies facing these issues may wish to discuss their options with their legal counsel.