Companies Will Now Be Fined By The FTC If Caught With Fake Reviews

How many times have we asked the question whether or not a review is creditable?

With the rise of social media being the focal point of many companies’ marketing strategy, the line between authenticity and deceptive endorsements has been largely discussed.

 The Federal Trade Commission (FTC) has just announced that notices have been issued to over 700+ companies outlining a number of practices that the FTC determined to be unfair or deceptive in prior administrative cases. These include, but are not limited to: falsely claiming an endorsement by a third party; misrepresenting whether an endorser is an actual, current, or  recent user; using an endorsement to make deceptive performance claims; failing to disclose an unexpected material connection with an endorser; and misrepresenting that the experience of endorsers represents consumers’ typical or ordinary experience. As time goes on this will also be applied to smaller businesses. 

 Our quick marketing tip to you is, do a deep dive into your online reviews and clean up any questionable posts or endorsements. A hefty fine can be placed up to $43,792 per violation. If you’re looking for Review Management, see how the experts at Dot Marketing can help! 

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