FTC Protecting Consumers from Fake Reviews

This week, skin care brand Sunday Riley agreed in a settlement with the Federal Trade Commission ensuring the company will not write fake reviews in the future. A complaint alleged that employees were forced by the CEO to write fake reviews of their products on Sephora’s website in order to improve sales.

“This is a big deal and happens a lot,” said Dallas trademark infringement attorney Chris Schwegmann of Lynn Pinker Cox & Hurst, who has handled cases involving allegations of companies posting fake reviews. The FTC also fined Devumi, a Florida-based company that sold fake social media followers and engagement, $2.5 million for social media fraud.

Mr. Schwegmann says the recent FTC ruling is important to consumers who depend on reviews to make their purchasing decisions. He believes this settlement is the beginning of more regulation.

“It’s good to see the FTC pursuing case law and recognizing it. There are lots of companies that sell thousands of reviews to companies without ever using their products or the services. When we read reviews, we expect that person to have used the product or experienced the services. Writing a fake review without using a product is no different than making a false claim about the product or service. It should be illegal as a violation of the Lanham Act. As technology changes, it changes the way people behave and what we rely on to make purchasing decisions. The FTC decision acknowledges the changes, and the law is catching up.”

For more information, please contact Sophia Reza at 800-559-4534 or sophia@androvett.com.

Are you ready to get started?