3 ms·

Yes? This is a basis of fraud and confidence schemes. Especially when it will enrich you.

• CryptoPunk 8y ago
  The basis of fraud is not promoting something. It's deceiving someone. Not all promotion is fraudulent. That being said, this particular regulatory disclosure requirement can arguably be considered a prohibition on a form of fraud, on the basis that all paid endorsements where the payment is not disclosed to the target audience are misleading the audience about the endorser's level of genuine interest in the product, and failing to disclose a materially significant fact about the endorsement that a reasonable audience would expect to be disclosed. I'm not sure if a statutory rule is the best way to address this though. Its rigidity and one-size-fits-all approach may catch a lot of non-fraudulent actions in its net, and avoiding that should be the first priority of the justice system. Common law would better account for the peculiarities of each case and how they weigh into the question of whether an action is fraudulent.