These days, everyone seems to be a reviewer, because every company seems to ask us to review their products and services. But companies beware: You better not compensate reviewers without disclosing the fact to the public.

That’s the message the U.S. Federal Trade Commission delivered to a company that touted its online reviews without mentioning that it gave customers who wrote them a discount. In the first case of its kind, the FTC charged AmeriFreight Inc., a broker that arranges the shipment of consumers’ cars, with failing to disclose that it gave $50 discounts to customers who posted reviews. The company settled deceptive advertising charges with the commission in February.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]