Antitrust Law Daily Wrap Up, ADVERTISING NEWS: FTC halts auto shipment broker’s promotion of “unbiased” consumer reviews, (Mar 2, 2015)
By Greg Hammond, J.D.
Automobile shipment broker, AmeriFreight, Inc. has agreed to a settlement with the FTC to halt the promotion of “unbiased” customer reviews, while failing to disclose that the customers were actually compensated for their reviews (In the Matter of AmeriFreight, Inc., File No. 142 3249).
AmeriFreight claimed on its website that the company has “more highly ranked ratings and reviews than any other company in the automobile transportation business,” the FTC’s complaint alleges. The website allegedly referred potential customers to online reviews through price quotes containing the following language: “DON’T TRUST JUST ANYONE, ONLY TRUST THE BEST”; “Google us bbb top rated car shipping’”; and “You Don’t have to believe us, our customers say it all.” However, the Commission alleged that AmeriFreight failed to inform potential customers that AmeriFreight provides reviewers with a discount of $50 off the cost of AmeriFreight’s services for their reviews, and a monthly $100 award is given to the consumer with the “best monthly review.”
“Companies must make it clear when they have paid their customers to write online reviews,” stated FTC Bureau of Consumer Protection, Jessica Rich. “If they fail to do that—as AmeriFreight did—then they’re deceiving consumers, plain and simple.”
The Agreement Containing Consent Order prohibits AmeriFreight from misrepresenting, in any manner, that its products or services are highly rated or top-ranked based on unbiased customer reviews or that their customer reviews are unbiased. AmeriFreight must also clearly and prominently disclose a material connection between any person providing an endorsement and respondents. The company has also agreed to maintain and make available to the FTC all advertisements and promotional materials containing any representation covered by the order, for a period of five years.
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