An anonymous reader quotes a Bloomberg Law report: Companies including Amazon and Facebook could face fines for fake reviews or other misleading online approvals, according to a warning from the Federal Trade Commission. The Warning comes as social media has blurred the line between authentic content and advertising, according to the FTC’s announcement on Wednesday. Practices such as influencer marketing leave some consumers confused as to when posters are paid to support a product, if their connection to the brand is not clearly disclosed.
The agency sent more than 700 companies notices saying they could face penalties of up to $ 43,792 per violation if they used endorsements in a way that defied the enforcement cases. previous FTC. The opinions demonstrate the efforts of FTC President Lina Khan to step up enforcement under the commission’s existing authorities, following a recent U.S. Supreme Court ruling that limited the ability to the agency to seek monetary compensation in court. The endorsement committee movement relies on agency authority that allows civil penalties against a company that engages in conduct it knows has been found to be illegal in a previous FTC administrative order, other than a prescription on consent.
Amazon, Facebook among businesses facing FTC warning over notices
Source link Amazon, Facebook among businesses facing FTC warning over notices