Celebrity endorsement can be good for brands, but its a complicated relationship [Video]

The UK’s advertising watchdog has banned online adverts for two nutrition brands, for their failure to disclose a well known businessman’s financial interest in the companies. Huel and Zoe had run adverts featuring testimonials from the entrepreneur and podcaster Steven Bartlett, who also appears on the popular BBC show Dragons’ Den.

The Advertising Standards Authority ruled that revealing Bartlett’s commercial relationship with the companies was key for customers to make an informed decision about the product. Not to do so, according to the regulatory body, was “misleading”. The two companies had argued in response that the average consumer would understand the commercial relationship and that explicit disclosure was unnecessary.

The controversy certainly highlights the sometimes blurry world of celebrity endorsements. Research has shown just how damaging such partnerships can be for both businesses and celebrities when things go wrong – and what they can do about it.

For most celebrities, whether they’re actors, athletes, musicians, chefs or models, chances arethat …