Antitrust Law Daily Wrap Up, ADVERTISING NEWS: FTC issues final consent order halting auto shipment broker’s promotion of “unbiased” consumer reviews, (Apr 21, 2015)
Organizations Mentioned:AmeriFreight, Inc.
By Michael Menzhuber, J.D., LL.M.
The FTC has approved a final consent order with AmeriFreight, an automobile shipment broker, which prevents the company from touting its highly rated online reviews while failing to disclose that they compensated consumers to write them (In the Matter of AmeriFreight, Inc., File No. 142-3249).
According to the FTC’s February 15 complaint, AmeriFreight represented that its online reviews were those of satisfied customers. However, AmeriFreight failed to disclose that consumers received $50 discounts to write favorable reviews and were offered the chance to win an additional $100 if their review was selected for a monthly prize.
Under the terms of the final consent order, AmeriFreight is prohibited from misrepresenting that their products or services are highly rated or top-ranked based on unbiased consumer reviews, or that customer reviews are unbiased. Also, AmeriFreight is required to clearly and prominently disclose any material connection, if one exists, between the company and its endorsers.
Companies: AmeriFreight, Inc.
News: Advertising ConsumerProtection FederalTradeCommissionNews