By February 27, 2015
In this era of social media and crowdsourced reviews, businesses with happy customers do what they can to publicize positive feedback. But if a company compensates customers for reviews and fails to disclose that tit-for-tat relationship, it’s illegal and deceptive marketing.
Just ask the Georgia-based auto-shipping company targeted in the Federal Trade Commission’s first case involving misrepresented online reviews.
The FTC announced today that AmeriFreight, an automobile shipment broker, agreed to settle charges that it violated the FTC Act when it deceptively represented that its favorable online reviews were based on unbiased reviews from customers.
According to the complaint [PDF], AmeriFreight – which arranges the shipment of consumers’ cars through third-party freight carriers – provided consumers with a discount of $50 off the cost of services if they agreed to review the company’s services online.
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