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Deen Loses Contracts Over Racism Allegations

Author: Scarinci Hollenbeck, LLC

Date: July 1, 2013

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Unsavory remarks, behavior, and sentiments from television personalities may not constitute a violation of entertainment law, but they can still result in significant career damage, as evidenced by the ongoing Paula Deen racism allegations scandal.

The Southern chef, known for her meals, cookware, and ancillary product lines was recently dropped from the Food Network for racism allegations remarks after holding a top-rated cooking show on the network for more than eight years. The allegations come from employees who worked at several of her restaurants, who claim that African-Americans, women, and other minority groups were often treated unfairly, and overheard Deen use racial slurs during their tenure. Adding to the situation was the release of a court deposition, in which Deen admitted to using racial slurs and off-color jokes in the past.

racism allegations

Although Deen has defended herself against the remarks and made a tearful apology to fans for her “insensitive” jokes, many of her sponsors have already drawn up agreements to end their relationship with the Savannah chef. Smithfield Foods, whose hams and other products Deen has endorsed since 2006, severed its relationship earlier this week. QVC and Kmart, both of which sell Deen-branded homewares, are currently “reviewing their options,” according to the Huffington Post. Most recently, Caesars Entertainment company released a statement saying it had “reached an agreement with Paula Deen Enterprises not to renew the business relationship.” The company plans to re-brand all of its existing Paula Deen-themed restaurants in the coming months, according to USA Today.

Deen has received a barrage of both criticism and support from fans, fellow chefs, and other television personalities. Some have argued that a person’s sentiments and language should not legally impact sponsorship and endorsement deals, as they do not violate any legal statutes. Others have asserted that discriminatory or racists remarks violate ethics clauses and provide companies with a legal basis to dismiss their sponsors.

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