The FTC prosecuted a fake paid Amazon review for the first time — here’s what that means for users
The FTC filed its complaint against Cure Encapsulations last week, after finding that the company had paid for the fabricated reviews, which purported to be written by actual customers and which made “false and unsubstantiated claims” about its products. While the extract garcinia cambogia is often claimed to be effective for weight-loss, the National Institutes of Health has noted that there is “no convincing evidence” that it can help you lose weight.
Cure Encapsulations has already reached a settlement with the FTC in which the company has agreed to never again make “weight-loss, appetite-suppression, fat-blocking, or disease-treatment claims” for any product without substantiating those claims with “competent and reliable scientific evidence,” the FTC says. The settlement also prohibits the company from misrepresenting endorsements, including reviews that falsely claim to come from an actual customer.
“People rely on reviews when they’re shopping online,” Andrew Smith, Director of the FTC’s Bureau of Consumer Protection, said in a statement. “When a company buys fake reviews to inflate its Amazon ratings, it hurts both shoppers and companies that play by the rules.”
Correction: This article was revised to correct Cure Encapsulation’s location. The company is headquartered in New York.
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Article source: https://www.cnbc.com/2019/03/01/ftc-cracking-down-on-fake-amazon-reviews.html