Litigation Alert - The FTC Pursues Online Endorsements by Undisclosed Insiders

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The Federal Trade Commission recently signaled that it may begin cracking down on the increasingly common practice of pumping up a product with online reviews that purport to be from customers but are really posted by friends, family or employees of the vendor. On August 26, 2010, the FTC announced that it had reached a settlement with Reverb Communications, Inc. (“Reverb”), a video game PR agency, and its principal, Tracie Snitker, regarding Reverb’s online marketing activities.

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