FTC Rules that Selling Followers and Likes or Posting Fake Reviews is Illegal

djbaxter

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FTC Rules that Selling Followers and Likes is Illegal, Along with Posting Fake Reviews
by Andrew Hutchinson, SocialMediaToday.com
October 23, 2019

The FTC has fined Florida businessman German Calas, Jr. $2.5 million over the sale of "fake indicators of social media influence”, while it's also issued a warning to Sunday Riley, whom the FTC says had written fake reviews of her company's products on Sephora’s website, and had also ordered her employees to do the same.

Both cases could have significant implications for the broader digital marketplace. In the first, Calas, who had been in charge of a company called Devumi, has been handed a significant fine in what could prove to be a benchmark case for online fake sellers. Devumi was the subject of a major New York Times investigation last year, which found that the company had been selling likes and followers to a range of celebrities and online influencers in order to inflate their perceived presence.

In the second case, popular skincare brand Sunday Riley agreed to a settlement with the FTC over allegations that the company had faked reviews on Sephora’s website in order to boost its sales.
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djbaxter

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Sadly it is still very prevalent, on Google and elsewhere.
 

VirtualGlobalPhone

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Usually, these fake reviews and likes are done outside of the country by some outsourced sales and marketing companies outside of the country.

But things are changing fine like this by FTC should wake many brand owners. Good move by FTC.
 

djbaxter

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Also the FTC also has some influence over Google, Facebook, Instagram, and Twitter - all headquartered in the US under their jurisdiction.
 

SkyWriting

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Amazon has a huge problem with 1000's of one liner 5 star reviews and the reviewers often forget what they are writing about or get confused and the product reviews are often for the wrong product!

Here's a 5 star review for an item that came broken - twice.

Sarah Valdez Renelien
5.0 out of 5 stars
Love LOL
October 2, 2019
Style: Standard Verified Purchase
The real deal. Our globe came cracked twice now 😑 but other then that, item is good.
 
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