SEC’s Kardashian Case, Marketing Rule Aim to Reveal Paid Ads

The SEC’s case against Kim Kardashian, its most high-profile move to make sure the public knows when a celebrity is paid for a social-media endorsement, comes on the eve of new disclosure rules on some marketing deals.

On the same day the Securities and Exchange Commission announced the charges against Kardashian, the agency posted a video in which Chair Gary Gensler warned the public against listening to endorsements for investment advice. “Celebrity endorsements don’t mean that a product is right for you or even, frankly, that it’s legitimate,” he said.

The $1.26 million enforcement action against Kardashian preceded the SEC’s ...