Blog Posts Tagged with Endorsements, Influencers, and Reviews

Ads for health products often target Boomer Consumers, but those aren’t the only claims pitched to people looking toward retirement. An FTC action alleges a company called Online Trading Academy has taken in more than $370 million by gearing its deceptive representations to that demographic. In addition, the complaint alleges violations of the Consumer Review Fairness Act.

Top picks, star ratings, in-depth reviews. Many consumers don’t buy anything without consulting third-party review sites or checking out the opinions of other customers. But how often are those ratings the product of buying and selling between the “independent” site and companies willing to pay for better play? And are those reviews really from satisfied customers or are they from employees acting on instructions to stuff the ballot box with five-star ratings?

They say hindsight is 20/20, but what about foresight? We’re not ones to prognosticate, but a look at notable FTC cases and initiatives from the past year suggests some topics likely to be top of mind in months to come. Here is a non-exhaustive list of issues in our 2019 rearview mirror and likely visible through the 2020 windshield.

Are you an influencer who works with brands to recommend or endorse products or services in social media? Or perhaps you’re an advertiser that uses influencers in your marketing. The FTC just issued a publication you need to know about: Disclosures 101 for Social Media Influencers. And that’s not all.

There isn’t a competition to find ways to use social media to mislead consumers. (At least we hope there isn’t.) But with apologies to fans of a certain British baking program, separate FTC actions just might qualify two companies as “Star Fakers” for fabricating followers and skewing reviews. The cases demonstrate why cooking up deceptive tactics could land your business on an episode of The Great American Fake-Off.

Whether you’re taking the midnight train to Georgia, a quick trip on MARTA, or a drive around the Perimeter on your way to one of the many Peachtree Streets, meet us in Atlanta on Thursday, August 15, 2019, for Green Lights & Red Flags: FTC Rules of the Road for Business.

The FTC and FDA just sent warning letters to four sellers of e-liquids, the nicotine-laced liquid used in vaping. But even if you don’t have clients in that industry, keep reading. The letters have a lot to say about social media marketing and influencers, regardless of the products they pitch.

Their lines of work are as different as can be: an HVAC and electrical contractor, a flooring seller, and a company that takes people on horseback rides. But according to the FTC, they have one thing in common. They all violated the Consumer Review Fairness Act. Read on for details about the FTC’s first cases solely enforcing the CRFA, the form contract provisions the FTC says contravened the law, and tips for keeping your contracts CRFA-compliant.

Is there anything you can’t get delivered to your front door? (And yes, home renovators will attest you can even get a front door delivered to your front door.) The burgeoning subscription model can offer convenience to customers, but only if companies honor established consumer protection principles.