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REVIEWERS: First FTC lawsuit just settled under new guidelines

by mr2monster
15 replies
http://www.nytimes.com/2010/08/27/te...er=rss&emc=rss

Just thought I'd post the link so that all of you guys out there doing reviews and such could read for yourselves.
#ftc #guidelines #lawsuit #reviewers #settled
  • Profile picture of the author Michael Oksa
    I thought making false reviews was always considered deceptive by the FTC. That's what this case is. No, they didn't disclose they were making it up, but that's a lot different than the disclosure a lot of marketers here are worried about.

    I'm sure there will be cases like that soon enough.

    All the best,
    Michael
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    • Profile picture of the author mr2monster
      Originally Posted by Michael Oksa View Post

      I thought making false reviews was always considered deceptive by the FTC. That's what this case is. No, they didn't disclose they were making it up, but that's a lot different than the disclosure a lot of marketers here are worried about.

      I'm sure there will be cases like that soon enough.

      All the best,
      Michael
      You're correct, I just know that a lot of people were downplaying the role the FTC would actually take in policing the internet regarding the new guidelines... So, i thought I'd post it for whoever was interested.
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      • Profile picture of the author Michael Oksa
        Originally Posted by mr2monster View Post

        You're correct, I just know that a lot of people were downplaying the role the FTC would actually take in policing the internet regarding the new guidelines... So, i thought I'd post it for whoever was interested.
        I believe that to be true, also.

        The thing is that they often say they are too small for the FTC to go after them, and that makes sense. HOWEVER, it's not the FTC they should be worried about, it's their competitors who won't mind reporting them to the FTC.

        Anyway, I hope I didn't come across the wrong way; I was glad you shared the article.

        All the best,
        Michael
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        • Profile picture of the author mr2monster
          Originally Posted by Michael Oksa View Post

          I believe that to be true, also.

          The thing is that they often say they are too small for the FTC to go after them, and that makes sense. HOWEVER, it's not the FTC they should be worried about, it's their competitors who won't mind reporting them to the FTC.

          Anyway, I hope I didn't come across the wrong way; I was glad you shared the article.

          All the best,
          Michael
          Nah, I understood where you were coming from. We coooo... haha.
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      • Profile picture of the author Steven Carl Kelly
        Originally Posted by mr2monster View Post

        You're correct, I just know that a lot of people were downplaying the role the FTC would actually take in policing the internet regarding the new guidelines... So, i thought I'd post it for whoever was interested.
        Pay close attention to what the FTC went after here:

        "This case sort of shows that what they have in mind is not the individual blogger or Twitterer, but rather a professional endorser," Professor Zittrain said.



        The action could be useful to public relations companies that want to resist requests from clients that they play dirty, he said.


        "When a client says 'Where are my good reviews? I am paying for them,' you can say, 'We can't do it because it is illegal,' " Professor Zittrain said.
        According to the commission's complaint, Reverb employees, including Ms. Snitker, posted positive reviews about clients' games from November 2008 to May 2009. The reviews were posted under account names that would give readers the impression that they had been placed by ordinary consumers, the complaint says.
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        • Profile picture of the author mr2monster
          Originally Posted by Steven Carl Kelly View Post

          Pay close attention to what the FTC went after here:

          "This case sort of shows that what they have in mind is not the individual blogger or Twitterer, but rather a professional endorser," Professor Zittrain said.



          The action could be useful to public relations companies that want to resist requests from clients that they play dirty, he said.


          "When a client says 'Where are my good reviews? I am paying for them,' you can say, 'We can't do it because it is illegal,' " Professor Zittrain said.
          According to the commission's complaint, Reverb employees, including Ms. Snitker, posted positive reviews about clients' games from November 2008 to May 2009. The reviews were posted under account names that would give readers the impression that they had been placed by ordinary consumers, the complaint says.


          I read it, and understood it.

          I also know that kind of stuff happens ALL THE TIME in our community. And if it continues to happen, they'll keep cracking down.

          People fake testimonials, sign up for forums and post positive things, etc.. all the time. I know of vendors that pay people to do this for them...
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          • Profile picture of the author Steven Carl Kelly
            Originally Posted by mr2monster View Post

            I read it, and understood it.
            Sorry, my post was really meant for everyone who reads the thread, not you in particular!
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            • Profile picture of the author mr2monster
              Originally Posted by Steven Carl Kelly View Post

              Sorry, my post was really meant for everyone who reads the thread, not you in particular!

              Ahh... gotcha.
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              • Profile picture of the author Rashell
                You can get away with way more on infomercials these days than the internet.
                But infomercials are "paid advertisements" and the public is notified at both the beginning and end of the segment that they are.

                These are companies hiring staff to pose as regular people honestly posting an influential review. They're purposely trying to deceive consumers into thinking a substantial # of people love the product. It's "review spam".

                Rashell
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                • Profile picture of the author Alan Petersen
                  It's also interesting that as PR firm they were basically paid a commission since they got a percentage of the sales as their fee so a close correlation to affiliates.

                  If folks are setting up blogs with fake reviews I don't see how they can't be considered "professional endorsers". Especially if they don't even bother buying the product being reviewed.
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  • Profile picture of the author baza1955
    Good info. Thanks for sharing it.
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  • Profile picture of the author ChickenMan
    I'm pleased to see the FTC cracking down on "fake" testimonials but they always end up revamping their techniques and becoming more and more deceptive.
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  • Profile picture of the author Mac Deyak
    fake reviews for cosmetic surgeons... well that's WAY more serious than 99% of digital products (with the exception of information and products claiming a 'cure' - a sure way to end up in muddy water if you don't have the goods)

    But I really doubt that it will transform the nature of online reviews, people can probably workaround it with a tight disclaimer.

    - Mac
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  • Profile picture of the author simbat
    I like this :
    They are meant to impose on the Internet the same kind of truth-in-advertising principles that have long existed offline.
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    • Profile picture of the author J Bold
      Originally Posted by simbat View Post

      I like this :
      They are meant to impose on the Internet the same kind of truth-in-advertising principles that have long existed offline.
      Wow, really? You should see the ****e they get away with on infomercials, day after day after day. And it continues, um, daily.

      You can get away with way more on infomercials these days than the internet.
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