Another Company Pinched by FTC for Deceptive Consumer Reviews
Legacy Learning Systems, producer of a DVD series featuring guitar lessons, and its owner Lester Gabriel Smith has settled with the Federal Trade Commission over charges that it deceptively promoted its products using online affiliate marketers. These affiliates posed as ordinary consumers and posted positive reviews and endorsements about Legacy Learning. Sound familiar?
Legacy Learning is settling for $250,000. According to the FTC’s press release, “such endorsements generated more than $5 million in sales.”
The company will also have to send reports to the FTC about its “50 revenue-generating affiliate marketers” each month.
FTC guidelines state that any “material connection” between a product and the person reviewing it must be disclosed.
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