A few months ago, I blogged about the complaint filed by Katherine Heigl against Duane Reade. Ms. Heigl complained that Duane Reade had improperly used a picture of her carrying bags from the drugstore chain snapped by paparazzi in posts at social media outlets like Twitter and Facebook. The allegation was that the photo and accompanying language amounted to an unauthorized celebrity endorsement of Duane Reade by Ms. Heigl.

To me, the case presented fascinating questions at the intersection of first amendment (free speech), social media and false advertising law. The picture of Ms. Heigel was taken in a public place, where celebrities generally have little privacy protection. On the other hand, the case was brought in New York which has significant protections for celebrity images used in advertising. Moreover, Duane Reade might have crossed a line when it copied the photo from a celebrity gossip site and removed the accompanying story.

Alas, however, we won't be getting any legal answers on these issues from this case because Ms. Heigl's attorneys have voluntarily withdrawn the lawsuit. While the terms of any settlement are confidential, according to media reports, Duane Reade will make an undisclosed contribution to the Jason Debus Heigl Foundation in exchange for the decision to end the case. As questions regarding the appropriate use of celebrity images in social media will continue to fester–and provide potential headaches for franchise social media managers–I'll be on the lookout for additional cases which might provide answers.

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