Jan 27, 2012

Another Challenge for the FTC

The New York Times reports that a retailer of cases for the Kindle Fire offered customers a complete refund to purchasers in return for a posting a review on Amazon about the product.

The retailer's letter detailing the offer did not explicitly state that the review must be positive, but that was the clear implication. And, as reported by the Times, 310 out of the 335 reviews of the product were five stars, the highest ranking.

So far, the Federal Trade Commission has resolved more of the apparent violations of its "Guides Concerning the Use of Endorsements and Testimonials in Advertising" with settlements rather than fines. But in this case the violation seems so blatant -- and so public, thanks to the Times coverage -- that the FTC will have to act.


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