Security News > 2021 > October > FTC fires warning shot at 700 leading companies about fake reviews
The Federal Trade Commission says it will fine companies for using fake online reviews or other deceptive endorsements to deceive their customers.
The US government agency announced this on Wednesday after it sent letters warning over 700 leading companies not to use such unlawful practices in their online marketing and advertising campaigns, given that they could trigger steep penalties.
"Receipt of the notice puts your company on notice that engaging in conduct described therein could subject the company to civil penalties of up to $43,792 per violation," said Serena Viswanathan, FTC Associate Director, in the letter.
"We are widely distributing similar letters and the notice to large companies, top advertisers, leading retailers, top consumer product companies, and major advertising agencies."
FTC issued its first penalty offense concerning endorsements in 1941 against Wilbert W. Haase Co., Inc and the last one in 1984 against Cliffdale Assocs.
Inc. "Fake reviews and other forms of deceptive endorsements cheat consumers and undercut honest businesses," added Samuel Levine, Director of the FTC's Bureau of Consumer Protection.