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ftc investigation Tag

Made in the USA?

Although we seem to be surrounded by products stamped with "Made in China," many Americans believe that products made in the United States are of higher quality. Additionally, a 2017 survey by Reuters found that nearly 7 in 10 respondents thought it was important to buy American-made, with over 20% of respondents indicating they would be willing to pay up to 10% more for those products. These figures may be even higher now due to the current administration's "America First" policy and goal to increase American manufacturing. As such, it is no surprise that companies want to...

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Battling another kind of “fake news”

When it comes to product reviews on Amazon or other marketplaces, it can be nearly impossible to distinguish legitimate product reviews from those paid for by a product marketer. Fake reviews have been a pretty standard marketing tool for some time; with product owners paying companies to post rave reviews of its product and poor reviews of competing goods. Fake reviews are so ubiquitous that, according to Saoud Khalifah, founder and CEO of Fakespot, a site that flushes out fake reviews, up to 70% of reviews on Amazon are fake. This staggering figure is perhaps why...

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‘BOGO’ Refunds Commence in Allstar’s Snuggie Settlement

On March 12, the Federal Trade Commission (FTC) began mailing refund checks totaling some $7.2 million to more than 218,000 consumers who purchased products from Allstar Marketing Group LLC that included an offer for a free product in connection with those purchases. The refunds, averaging $33 per consumer, are a result of an investigation by the New York State Office of the Attorney General and a subsequent 2015 settlement with the FTC. Allstar is alleged to have violated multiple consumer protection laws by its deceptive advertising practices involving products including, among others: Snuggie, Perfect Bacon Bowl, Magic Mesh Door, Perfect Brownie...

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Bounding into Trouble: Trampoline Review Sites Launch Brothers into FTC Investigation

Trampoline selling brothers, Sonny and Bobby Le, are prohibited from engaging in deceptive marketing practices after sending consumers to "independent" product review sites that were actually owned and operated by the brothers' company. According to the FTC complaint, the brothers advertised and sold Infinity and Olympus Pro trampolines through various websites. These e-commerce websites displayed logos and seals for the Bureau of Trampoline Review, Trampoline Safety of America, and Top Trampoline Review. As a result, consumers were led to believe that these review sites containing ratings based on safety and performance, were comprised of unbiased, expert reviews. In reality, these...

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FTC shakeup may be welcome news for online product marketers

The president appears to be making good on his promise to cut government regulations, as the Federal Trade Commission is the latest body to get “Trumped.” Maureen Ohlhausen of the FTC, a critic of government regulation, has been appointed the interim chair by President Trump. She replaces Edith Ramirez who will be resigning today, February 10, 2017. Ohlhausen will be bringing a new focus to the FTC; specifically, an emphasis on pursuing claims based on actual consumer harm, not just whether a regulatory violation occurred. For example, on a recent $2.2M settlement with Vizio regarding the software in...

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