News & Analysis as of

Misrepresentation Online Reviews

Perkins Coie

FTC Finalizes Rule Banning Fake Reviews and Testimonials

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The Federal Trade Commission (FTC) recently finalized its Rule on the Use of Consumer Reviews and Testimonials (Rule) to combat fake reviews and testimonials. The finalized Rule comes after the FTC reviewed 100 public...more

Cozen O'Connor

Alleged Review Ruse By Roomster Gets Busted by FTC and AGs

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The FTC and a bipartisan group of six AGs have secured a proposed order banning the rental listing platform Roomster and its owners (collectively “Roomster”), from buying or incentivizing reviews....more

Ervin Cohen & Jessup LLP

FTC Proposes Ban on Fake Reviews and Testimonials

On June 30, 2023, the Federal Trade Commission (“FTC”) announced that it would be publishing a notice of proposed rulemaking on the use of consumer reviews and testimonials. The proposed rule follows FTC’s November 2022...more

Hinch Newman LLP

FTC Attorney Tips for Ad Agencies and Review Sites Concerning Proposed Endorsement Guide Rule

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The comment period on the FTC’s proposed rule regarding the use of endorsements and testimonials in advertising ended September 26, 2022. The Request for Comment approved by the Federal Trade Commission in May 2022 sought...more

Venable LLP

Rental Review Roundup: FTC Targets Deceptive “Testi-phony-al” Scheme to Lure Renters to Paid Housing Platform

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​​​​​​​Last week the Federal Trade Commission and six states sued rental listing platform Roomster, Corp. along with its owners for allegedly charging consumers for access to phony listings bolstered by fake reviews it had...more

Alston & Bird

Online Retailer Settles with FTC over Allegations of Hiding Negative Reviews

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On March 21, 2022, the Federal Trade Commission (FTC) announced a final administrative complaint and decision and order that finalizes a settlement with a California online fashion retailer to settle allegations that the...more

Kohrman Jackson & Krantz LLP

Amazon Files Lawsuit To Stop Fake-review Brokers

In a move that could prove beneficial for both brands and consumers alike, Amazon recently filed a lawsuit against two fake-review brokers, AppSally and Rebatest. These companies connect consumers with third-party sellers to...more

Manatt, Phelps & Phillips, LLP

Online Fashion Retailer Fined by FTC for Suppressing Negative Reviews

The Federal Trade Commission (FTC) has fined online fashion retailer Fashion Nova $4.2 million to settle allegations that the company blocked negative reviews of its products from being posted on its website. The FTC said...more

Cozen O'Connor

FTC Orders Online Retailer to Post Negative Customer Reviews of Its Products

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The FTC reached a settlement with online fashion retailer Fashion Nova, LLC to resolve allegations that it blocked negative reviews from being posted on its website in violation of the FTC Act...more

BakerHostetler

FTC Reviews Fashion Nova - Review Suppression Leads to Double Trouble

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In April 2020, when we were all focused on finding masks and hand sanitizer, the Federal Trade Commission (FTC) announced a $9.3 million settlement with Fashion Nova. The agency alleged that the company violated the Mail...more

Fox Rothschild LLP

FTC Warns About Reviews & Endorsements

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Earlier this month, the Federal Trade Commission (FTC) announced that it is now using its Penalty Offense Authority to remind companies not to use fake online reviews or other deceptive endorsements and that stiff penalties...more

Manatt, Phelps & Phillips, LLP

FTC Puts Advertisers and Agencies on Notice for Fake Online Reviews and Other Deceptive Endorsements

The Notice was sent within a week of another notice to 70 for-profit higher education institutions, which focused on “false promises they make about graduates’ job and earnings prospects and other outcomes.”...more

Jenner & Block

FTC Warns Companies It Will Impose Civil Penalties for Misleading Online Reviews

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Shoppers in online marketplaces, or customers checking reviews before dining or retaining a service, have become increasingly reliant on internet testimonials. Mark P. of Hoboken, NJ rates Hank’s Burger Depot 5 out of 5...more

Proskauer - Advertising Law

On Notice: FTC Issues Warning to Hundreds of Companies Regarding the Use of Fake Reviews and Other Misleading Endorsements in...

Prompted by the proliferation of social media advertising that often blurs the line between authentic content and sponsored posts, the Federal Trade Commission last week sent more than 700 companies a Notice of Penalty...more

Lathrop GPM

FTC Warns Endorsements Could Lead to Civil Penalties

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Yesterday, the Federal Trade Commission issued a press release suggesting that the agency will be cracking down on allegedly deceptive practices in social media and online reviews, scrutinizing in particular reviewers who...more

Manatt, Phelps & Phillips, LLP

Pay-for-Play Website Pays FTC Over Fake Reviews, Deceptive Rankings

Deceptive rankings and fake reviews triggered a Federal Trade Commission (FTC) action for a comparison shopping website—and a warning to other companies. Delaware-based LendEDU operates a website that compares consumer...more

Sterne, Kessler, Goldstein & Fox P.L.L.C.

MarkIt to Market® - October 2019: Zero Stars: FTC Settles with Skincare Company Over Fake Online Reviews

Until recently, Texas skincare company Sunday Riley was one of the shining stars of the lucrative cosmetics market – its products were featured at high-end retailers such as Sephora and Nordstrom, high-profile influencers and...more

Sheppard Mullin Richter & Hampton LLP

“Good Genes?”: Maybe Not. FTC Takes Action Against Sunday Riley and Sunday Riley Modern Skincare, LLC For Employees False Reviews

Sunday Riley launched her skincare firm Sunday Riley Modern Skincare, LLC (“SRMS”) in 2009 and its skincare products, including Good Genes, Power Couple, U.F.O., C.E.O., Luna and Tidal, have enjoyed tremendous success, having...more

Fox Rothschild LLP

FTC Charges Skincare Company For Posting Fake Reviews

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In this day of online consumerism, the success of a product can change drastically with a simple addition, or subtraction, of a “star.” In October of 2018, a whistleblower shed light on the drastic measure one particular...more

Seyfarth Shaw LLP

FTC Proposes No-Money, No-Fault Settlement With Cosmetics Company Over False Customer Reviews

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Seyfarth Synopsis: FTC publishes proposed consent order with cosmetic company that posted fake customer reviews but some FTC commissioners place doubt on its effectiveness because there is no financial penalty....more

Orrick, Herrington & Sutcliffe LLP

Putting Individuals In The (Urth)Box: FTC Goes After Individual Executives For Unfair And Deceptive Practices

In an increasing trend, the Federal Trade Commission (FTC) joined other federal regulators seeking to hold individuals – not just companies – liable in enforcement proceedings. The most recent target was San Francisco-based...more

Farrell Fritz, P.C.

NY Medical Providers: Use Caution When Soliciting Positive Reviews on Consumer-Review Websites

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Consumers often seek online reviews of a business on platforms such as Yelp, CitySearch, Yahoo and Google Plus Pages before purchasing products or services. This includes patients seeking online reviews of a physician or...more

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