As our readership knows, NFTs are unique and often one-of-a-kind digital files, such as images or short videos, that use blockchain technology to establish publicly, verifiable proof of ownership. What you might not know is that
Apple eventually removed the Sticky NFT App from its app store for allegedly misleading consumers by use of the word "NFT" to describe its digital collectibles that were missing the publicly-verifiable ownership element required to be true NFTs. Please note that claims are considered "misleading," according to the Federal Trade Commission Act, if they imply something that is untrue (e.g., the nature of a product) or leave out relevant information.
Recently, Apple permitted an updated Sticky app to return to the iOS platform. With the new update, Sticky users may now use the app to create digital collectibles that may be minted into NFTs on public blockchains. Notably, digital collectibles designed using the app may be traded on Sticky, but, in compliance with the iOS platform restrictions, any NFTs of such collectibles may not.
Other Marketing Law Violations and Consequences
Recently, some NFT projects have been the subject of various allegations, including those involving fraudulent, deceptive, and misleading business practices. An extreme example is the alleged Frosties Utility NFT scheme, which
Marketers and NFT minters who engage in fraudulent, deceptive and/or misleading business practices may face serious consequences, including: 1) large fines (up to
Looking to Create an NFT App?
To avoid such allegations, those in the NFT industry must comply with state and federal laws that apply to their business and advertising practices. Given these risks, it is advisable to obtain guidance from attorneys experienced with NFT promotional advertising before offering NFT apps or other token-related collections to the consuming public.
Similar Blog Posts:
NFT-Influencer Contract: Don't Get Cancelled
Why You Need an NFT Contract
What is an NFT Sweepstakes AMOE?
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Mr
NY 10123
Tel: 212246 0900
Fax: 212246 0900
E-mail: dklein@legal.org
URL: www.kleinmoynihan.com
© Mondaq Ltd, 2022 - Tel. +44 (0)20 8544 8300 - http://www.mondaq.com, source