This morning, the Federal Trade Commission put businesses on notice for using deceptive practices and influencer’s fake reviews to peddle their products.
The “Notice of Penalty Offenses” warns companies and advertisers that all endorsements and reviews must come from the opinions of real customer experiences. Otherwise, businesses could face penalties of up to $43,792 per violation.
Some examples of violations include fake paid reviews and reviews by customers with connections to the company.
The FTC warns consumers to research a product thoroughly before making an investment. Consider the reviews carefully, and always examine more than one source.
Businesses must disclose relationships between the endorser and the advertiser, whether it’s a friend/business partner, payment, or free product. Additionally, endorsements must represent people’s typical experiences and not make deceptive claims about how a product performs. Endorsers must be actual, current, or recent users of the advertised product.
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