The FTC has implicated Facebook, Amazon, and LinkedIn for using or facilitating fraudulent reviews and ads to sell products online.
The FTC recently issued notices to nearly 700 businesses for deceptive advertising techniques like false reviews and other grey business strategies. As per FTC, the Notice of Penalty Offenses will inform offending organisations that they must rectify these issues or face penalties of up to $43,792 per violation.
The FTC identified multiple infractions, including falsely claiming third-party endorsements and distorting whether an endorser is an actual, current, or recent user. With the notices sent out, the FTC will have a legal basis to impose penalties on violating corporations in the future.
To provide companies with more guidance, the Commission has produced an overview guide to its endorsement rules. The article contends brands would do well to familiarise themselves with FTC’s latest regulations.
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