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.
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