Disclosure Wire
2009: One FTC rule change. One entrepreneur paying attention. Patents issued: 2 Venture capital raised: $4M+ Gartner Cool Vendor 2015 - while still in beta CMP.ly/0 through CMP.ly/5: the codes that fit a disclosure into a tweet Co-Chair, WOMMA Ethics Advisory Panel From Arista Records to FTC compliance software
Tom Chernaik
Founder / Technologist / Attorney - New York

Tom
Chernaik

He read a footnote in the Federal Trade Commission's 2009 endorsement guidelines and decided the sponsored post needed a grammar. Then he patented it.

CEO, CMP.LY Co-Founder, CommandPost JD, Cardozo NYU
$4M+
Venture capital raised
2
Patents issued
30+
Brands in beta
2009
The year it started
The Present Tense

A company built inside a character limit

Tom Chernaik runs a business whose entire premise is a formatting problem: how do you fit a legally required disclosure into a tweet?

The answer he built, and then patented, is CMP.LY - a system of short codes running from CMP.ly/0 through CMP.ly/5, each standing in for a specific relationship a poster might have with a brand. Paid. Sponsored. Free product received. Employee. Six options, machine-readable, human-clickable, small enough to survive inside 140 characters. It reads like a URL shortener. It behaves like a compliance officer.

CMP.LY later grew into CommandPost, a platform that monitored brand social channels and measured whether content strategy actually worked. In 2015, Gartner named it a Cool Vendor while it was still in beta, with more than thirty leading brands and agencies already using it. That same year the venture money vanished when the lead investor died. Chernaik fell back on the patents and kept the core disclosure product alive.

He is, by training, a lawyer. He describes himself first as a problem-solver and a technologist. The problems he keeps circling back to are the ones nobody else finds interesting until they suddenly matter to everyone: disclosure, transparency, identity, and who is telling the truth online.

The disclosure codes

CMP.ly/0No connection to the brand
CMP.ly/1A relationship exists - see disclosure
CMP.ly/2Free product or sample received
CMP.ly/3Compensated for the post
CMP.ly/4Employee or agent of the brand
CMP.ly/5Custom / other disclosed relationship

Standardized codes as reported at launch. Each links to a full, documented disclosure.

Reputation is probably the most important reason to properly disclose. There is a growing sense of mistrust of digital and social content, and being transparent can go a long way to establishing yourself as credible. - Tom Chernaik, on why disclosure matters
Before The Footnote

Music first, compliance later

Chernaik started in the music business, work he says he genuinely loved.

Arista Records. SonicNet, one of the early music services on the internet. He co-founded an independent label, Gotham Records, and launched AllIndie.com, a startup that let independent musicians handle promotion, marketing, and distribution without signing away their rights to a traditional label. When the rest of the industry was busy suing Napster, he partnered with it instead, looking for a way to make the disruption work for the artists he represented rather than against them. That instinct - work with the thing everyone else is fighting - is the quiet through-line of his whole career.

He built music sponsorships at Track Entertainment, including the Pepsi Britney Spears tour. He built advertising and sponsorship platforms for Fortune 100 brands at XM Satellite Radio, now part of Sirius XM. Somewhere in there he also picked up a JD from Yeshiva University's Cardozo School of Law, on top of a liberal arts degree from NYU. The lawyer and the marketer would eventually collide over a single regulatory update, and out of that collision came CMP.LY.

The Arc

Chapters

1990s

The label years

Arista and SonicNet, then co-founding Gotham Records and launching AllIndie.com for independent artists.

2000s

Sponsorships

Business development at Track Entertainment - including the Pepsi Britney Spears tour - and ad platforms at XM Satellite Radio.

2009

The pivot

The FTC updates its endorsement rules. Chernaik founds CMP.LY to make compliance a product, not a paragraph.

2011

Finance

Launches CMP.LY4Finance, taking on disclosure in the hardest, most heavily regulated industry to post in.

2015

Cool Vendor

Gartner recognizes CommandPost while still in beta, with 30+ brands and agencies already aboard.

2015+

The fallback

The lead investor dies and funding collapses. Chernaik keeps the core disclosure product and its patents alive.

I am passionate about using technology to address identified problems, especially complex challenges that require elegant solutions. - Tom Chernaik
Receipts

A working timeline

1990s
Music business. Roles at Arista Records and SonicNet.
late 1990s
Founder, take one. Co-founds Gotham Records; launches AllIndie.com for independent musicians.
2000s
Sponsorships. Director of Business Development at Track Entertainment; the Pepsi Britney Spears tour.
2000s
Big radio. Builds advertising and sponsorship platforms at XM Satellite Radio (now Sirius XM).
2009
CMP.LY. Founded after the FTC updates its endorsement and testimonial guidelines.
2011
CMP.LY4Finance. A disclosure solution for the financial services industry.
2015
Gartner Cool Vendor. CommandPost recognized while still in beta with 30+ brands.
2015
Setback. Lead investor David Freschman dies; funding falls through. The company refocuses on core disclosure and its patents.
The Operator

How he works the problem

Chernaik's bet was contrarian in 2009 and obvious now: disclosure is not a legal burden, it is a trust feature.

Regulators, he has argued as an expert witness and frequent speaker, are serious about advertising not being deceptive and about relationships between brands and their advocates being clearly disclosed. But the deeper argument he keeps making is about reputation. In an economy that now runs on influencers, the idea that transparency is a competitive advantage rather than a compliance tax has aged remarkably well.

He co-chaired the Members Ethics Advisory Panel at WOMMA, the Word of Mouth Marketing Association, helping write the norms for how marketers should behave online before that was a mainstream concern.

Traits, as observed

- Partners with disruption instead of litigating it

- Drawn to complex problems that want elegant answers

- Persistent - fell back to patents when the money died

- Lawyer's precision, marketer's instincts

- Ethically minded, publicly and on the record

Small True Things

Footnotes to the footnote

A New Yorker who, by his own account, has lived in Manhattan his whole life.

Trained as a lawyer, but introduces himself first as a problem-solver and technologist.

His earliest startup, AllIndie.com, helped independent musicians market and distribute without a traditional label deal.

The company name is also its product - CMP.LY doubles as a compliance-flavored URL shortener.

His Twitter handle, @CMPLYtom, fuses the company and his first name into a single word.

Later interests orbit the same question he began with: blockchain, AI, and privacy applied to identity and trust.

We are committed to applying the technologies and lessons we've learned to solving challenges around disclosure, transparency and content strategy. - Tom Chernaik, on what comes next

Quick facts: Tom Chernaik

Tom Chernaik is a New York entrepreneur and lawyer who turned a single 2009 FTC rule change into a business. As CEO and co-founder of CMP.LY (later CommandPost), he built a patented system for squeezing legally required advertising disclosures into character-limited social media posts, using short codes like CMP.ly/0 through CMP.ly/5. A former music-industry marketer with a JD from Cardozo, he raised over $4 million in venture capital, earned a 2015 Gartner Cool Vendor nod, and became a go-to voice on social media ethics as co-chair of WOMMA's ethics panel.

Role
CEO & Co-Founder at CMP.LY / CommandPost
Organizations
CMP.LY, CommandPost, XM Satellite Radio, Track Entertainment, Gotham Records, AllIndie.com, Arista Records, SonicNet, WOMMA (Word of Mouth Marketing Association)
From
New York, United States
Nationality
American
Education
BA in Liberal Arts, New York University, JD, Yeshiva University, Benjamin N. Cardozo School of Law
Known for
Raised over $4 million in venture capital for CMP.LY, Invented and patented a system for standardized social media disclosures (two patents issued), CommandPost named a Gartner Cool Vendor for 2015 while still in beta

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