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$250,000 fine...

by Geoffrey Freedom
17 replies
Be careful with fake reviews....
FTC Settles With DVD Seller Over Fake Reviews | PCWorld
#$250 #dollar #fine
  • Profile picture of the author PPC-Coach
    Sad part is the guy probably made 5x that on sales.

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    • Profile picture of the author azmanar
      Originally Posted by PPC-Coach View Post

      Sad part is the guy probably made 5x that on sales.
      Hi,

      The company Legacy, made $5million as a result of the 25 fake reviews.

      The fine of $250k is the total of $10,000 per fake review.

      That is only 5% of the total revenue already made by deceptive reviews.

      FTC is being reasonable and that small amount serves as a warning only.
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      • Profile picture of the author mtmjohn
        Originally Posted by azmanar View Post

        Hi,

        The company Legacy, made $5million as a result of the 25 fake reviews.

        The fine of $250k is the total of $10,000 per fake review.

        That is only 5% of the total revenue already made by deceptive reviews.

        FTC is being reasonable and that small amount serves as a warning only.
        Just curious why they didn't just use real reviews if they have made $5million sales. Haha
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        • Profile picture of the author azmanar
          Originally Posted by mtmjohn View Post

          Just curious why they didn't just use real reviews if they have made $5million sales. Haha
          Hi John,

          I bet Legacy knows all the time about what the affiliates have been doing.
          So, they maintained it because it worked well and brought good sales.

          " If it aint broken, don't change. " works ... until FTC flew in.

          On the positive side, we now know how effective and powerful
          testimonials are in bringing in sales. No doubt about it anymore.

          Here is my conclusion John:

          You give me review copies of your products. I use and test it.
          Then I'll do a "real" fantastic review.

          This means, my review is not fake.

          And then if I join your affiliate program at a later date, the
          review is valid, not fake nor it is deceptive. I can put my affiliate
          links anywhere I wished in my site.

          The next thing I need to stay safe is to state in my Site User Policy
          that " this site contains affiliate links that may bring commissions. ".

          Ok. John. Send me review copies right now. lol...
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          • Profile picture of the author James Sides
            Originally Posted by azmanar View Post

            Hi John,

            I bet Legacy knows all the time about what the affiliates have been doing.
            So, they maintained it because it worked well and brought good sales.

            " If it aint broken, don't change. " works ... until FTC flew in.

            On the positive side, we now know how effective and powerful
            testimonials are in bringing in sales. No doubt about it anymore.

            Here is my conclusion John:

            You give me review copies of your products. I use and test it.
            Then I'll do a "real" fantastic review.

            This means, my review is not fake.

            And then if I join your affiliate program at a later date, the
            review is valid, not fake nor it is deceptive. I can put my affiliate
            links anywhere I wished in my site.

            The next thing I need to stay safe is to state in my Site User Policy
            that " this site contains affiliate links that may bring commissions. ".

            Ok. John. Send me review copies right now. lol...
            Actually just tucking that little disclosure in a user policy is not going to do the job. Technically your disclosure is supposed to be in plain view of the affiliate link.

            If you read the story here many of these sites had disclosure but were only accessible once you clicked a link. The disclosure MUST be on the same page as the affiliate link.

            Cheers,

            James
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            "People will remain the same until the pain of staying the same is greater than the pain of change."

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  • Profile picture of the author PandoraMarketing
    Look's like they are going to start coming down hard on the farticles soon again, be prepared lol :p
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  • Profile picture of the author ChrisBa
    Nice little fine there, wonder how much he made off of it
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  • Profile picture of the author jcruz
    Sucks for him, thats what he gets for being a scam artist.
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  • Profile picture of the author truly_gifted
    Excuse me for being a bit uninformed, but what the heck is a farticle?
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    • Profile picture of the author Shaz07
      Originally Posted by truly_gifted View Post

      Excuse me for being a bit uninformed, but what the heck is a farticle?
      Fake content or reviews + article = farticle.

      Fake + blog = flogs
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  • Profile picture of the author PandoraMarketing
    A farticle is like a fake news site, fake article with fake reviews and feedback.
    A flog is similar but in the style of a blog

    Cheers Shaz
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    • Profile picture of the author James Sides
      I think the sad thing here is it was actually the affiliates breaking the law but rather than crack down on them the company is hit with the fine.

      Now, I agree that companies should monitor their affiliates but is it really all that practical? Wouldn't it make more sense for the affiliates to be the ones fined since THEY are the ones who didn't disclose their affiliate relationship?

      I knew it was only a matter of time til the people trying to skate the FTC were nabbed but sadly it looks like the merchant is going to be forced to babysit every Tom, Dick, and Harry who sticks a link on their site.

      Sad day indeed when the ones committing the crime avoid the punishment.

      -James
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      "People will remain the same until the pain of staying the same is greater than the pain of change."

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  • Profile picture of the author DerekMadden
    idiots

    Derek Madden
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  • Profile picture of the author dragoncpa
    250,000$fine? If I can earn 1000$per month. That will be great.
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    A tutorial from a super affiliate
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  • Profile picture of the author MikeMorgan
    I wouldn't even support farticles and flogs .

    They are not ethical business practices .
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  • Profile picture of the author MayhemMirix
    That's one big fine. Of course, not for them, but for the simple mortals, it is.
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