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The Federal Trade Commission said Tuesday it's settled its first action against a marketer who used fake paid reviews to boost sales of its product on Amazon.
The FTC had accused Cure Encapsulations of paying AmazonVerifiedReviews.com to write and post fake reviews to maintain an average Amazon rating of 4.3 out of 5 stars for the company's garcinia cambogia weight-loss supplement. The agency had also accused the company of making false and unsubstantiated claims, including reviews that said the product caused weight loss of two or more pounds each and "literally blocks fat from forming."
[...] Under the terms of the proposed settlement, Cure Encapsulations is barred from making claims about the health benefits of dietary supplements without supporting clinical evidence. The defendants are also required to notify its customers of the allegations against it and identify for Amazon which reviews it purchased.
A $12.8 million judgment was levied against Cure Encapsulations, but it will be suspended when the company pays $50,000 to the FTC and fulfills other tax obligations. The full amount of the judgment will be immediately due if the commission finds the company misrepresented its financial condition.
(Score: 4, Insightful) by donkeyhotay on Wednesday February 27 2019, @04:20PM
I'm glad the FTC went after this company, but I suspect they spent a hell of a lot more than $50,000 to get the case to settlement. Meanwhile, a thousand Chinese companies are churning out crap knockoffs with stellar reviews and nothing is done about it.