- Cameo, once worth $1 billion, can’t pay $600,000 fine.
- Company settles for $100,000 payment.
- Cameo’s future remains uncertain amid financial struggles.
Once a tech industry sensation, Cameo has experienced a dramatic reversal of fortune.
The celebrity video message platform, which reached a $1 billion valuation in 2021, now finds itself unable to pay a $600,000 fine imposed for violating Federal Trade Commission rules on celebrity endorsements.
Pocket change settlement
In a settlement agreement made public by New York Attorney General Letitia James, Cameo’s financial struggles were laid bare.
Cameo, facing a $600,000 penalty, negotiated a reduced payment of just $100,000 to be split among 30 states involved in the investigation, citing its inability to pay the full amount.
Future uncertain
Cameo’s decline stems from its failure to attract A-list celebrities and multiple rounds of layoffs in recent years.
The settlement requires the company to implement new compliance measures, including video watermarks and increased monitoring.
If Cameo fails to pay the reduced fine within three years or files for bankruptcy, it may face the full $600,000 penalty plus interest.
