An advertiser that paid affiliates to post favorable reviews of its product in online articles, blog posts and other online editorial material without disclosing the arrangement agreed to pay a $250,000 fine to settle deceptive advertising charges brought by the Federal Trade Commission. The advertiser also agreed to monitor its affiliate marketers and make sure that they are not misrepresenting themselves as ordinary consumers or independent reviewers. The FTC complaint alleged that the failure to disclose the arrangement violated the agency's revised Guides Concerning the Use of Endorsements and Testimonials in Advertising.
In re Legacy Learning Systems, Inc., FTC File No. 102 3055 (Mar. 15, 2011) Press Release