Kim Kardashian in a 2016 shot
Photo: © Eduardo Munoz / Reuters/ REUTERS
Kim Kardashian recommended a cryptocurrency - and concealed that the provider paid her for this advertising.
The celebrity is now paying dearly for this.
The reality star is paying $1.26 million in fines and compensation in a settlement with the US Securities and Exchange Commission.
This was announced by the authority on Monday.
Specifically, Kardashian is accused of receiving $ 250,000 from the provider EthereumMax for a recommendation on Instagram and not having disclosed this.
For years, the SEC has warned investors about dubious investment tips from celebrities with a high reach on the Internet - especially in the case of highly speculative and often laxly regulated crypto assets.
In 2018, the US Securities and Exchange Commission had already fined boxing star Floyd Mayweather and hip-hop producer DJ Khaled for doing unfair paid promotions for digital currency transactions on their social media channels.
Take off shirt to text
Under federal securities laws, any celebrity or other person promoting a crypto security must disclose the type, source, and amount of compensation they receive in return for advertising, the SEC's Gurbir S. Grewal said: "The Investors have a right to know whether the advertisement for a security is impartial.«
Most recently, she made headlines with statements about her unusual dress designs, which often brought with them very practical problems.
On the talk show Live with Kelly and Ryan, the 41-year-old appeared in a black top with gloves integrated.
When asked about this, she said, “Everything is attached to one another.
So I would have to take off my shirt to text me in the car.« This is a »real problem«, said the entrepreneur in an interview with »People« magazine.
It is "difficult to go to the toilet" when wearing such outfits.
With stories like these, she secures the attention of many fans, which she in turn uses for product and financial recommendations.
mamk/dpa