The Federal Trade Commission has settled with a company it alleged was engaged in deceptive marketing practices involving the internet, placing the company – an auto shipment broker – on reporting conditions.
In this particular case, the company – AmeriFreight — was engineering positive internet reviews.
In fact, it was going to extraordinary lengths to get positive reviews – it was offering discounts to customers who agreed to write them. And it went even further – it charged extra to customers who did not so agree.
“Companies must make it clear when they have paid their customers to write online reviews,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “If they fail to do that – as AmeriFreight did – then they’re deceiving consumers, plain and simple.”
Here, from the FTC, is a description of the scheme:
* Provided consumers with a discount of $50 off the cost of AmeriFreight’s services if consumers agreed to review the company’s services online, and increased the cost by $50 if consumers did not agree to write a review;
* Provided consumers with “Conditions for receiving a discount on reviews,” which said that if they leave an online review, they will be automatically entered into a $100 per month “Best Monthly Review Award” for the most creative subject title and “informative content”;
* Contacted consumers after their cars had been shipped to remind them of their obligation to complete a review to receive the “online review discount,” and qualify for the $100 award;
* Failed to disclose the material connection between the company and their consumer endorsers — namely, that AmeriFreight compensated consumers to post online reviews;
* Deceptively represented that its favorable reviews were based on the unbiased reviews of customers.
RBR-TVBR observation: Any marketing medium can be abused, but the range of opportunity on the web seems limitless. We wish the FTC all the luck in the world as it tries to rein in deceptive digital advertising practices.
But the simple truth is that we as consumers must be constantly on our guard and must work at developing our own computer savvy so that we are not taken in those who every day seek to profit from the unwise, the unwary and the gullible consumers among us.
Although that offer to make a small $50K payment in order to get access to $12.5M that this nice fellow from Nigeria is offering sure is tempting…
