What Exactly Does Kim Kardashian Owe €1.3m For?

Confused? So were we.

 

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The story has been doing the rounds today. Kim Kardashian has settled a charge brought to her by US Securities and Exchange Commission.

The settlement? It’s a casual €1.3million. While the story has been covered far and wide by the media, some are still quite confused about what exactly the charge is for.

In simple terms, essentially Kim has been investigated for a post she shared on her Instagram promoting EMAX tokens, a crypto asset security being offered by EthereumMax. For the post, she was paid 250k to share it, but she forgot to disclose that on the post itself.

 

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A post shared by Kim Kardashian (@kimkardashian)

Influencers promoting anything they have been paid or partnered to do so, must share that information on their promotional post. This means a simple #AD or ‘paid partnership’ needs to be tagged on the post so followers know where they stand when they see such a post.

Often, influencers work with brands that they genuinely like and promote things that they believe in. However, this isn’t always the case and many followers like to have an open and honest policy with the people they’re following. Declaring if a post is sponsored or not means followers can make a more informed decision if they want to spend their money on a product a celebrity is being paid to promote.

In this circumstance, Kim forewent to #AD and is now paying the price. When promoting Crypto related content, this must be disclosed not only with followers but with the SEC too. She agreed to work with those investigating her and come to an agreement on her penalty.

 

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Kim has also agreed not to promote any crypto asset for the next 3 years.

Announcing the news, Gurbir Grewal, director of the SEC’s division of enforcement, said in a statement:

“The federal securities laws are clear that any celebrity or other individual who promotes a crypto asset security must disclose the nature, source, and amount of compensation they received in exchange for the promotion.”

Of course, the fine is just a drop in the ocean for a multi-millionaire like Kim. But it serves as a harsh reminder for celebrities and influencers alike to always remain transparent with their followers.

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