October 13, 2009
Previously published on September 30, 2009
The Electronic Retailing Self Regulation Program, an industry ad watchdog that is part of the National Advertising Review Council, has criticized a company for operating a Web site that purported to post reviews from consumers of its own product.
The company, Ecommerce Solutions, markets a tooth whitener called Vibrant White. It also ran a Web site called top-teeth-whitening-reviews.com, which purportedly posted consumer reviews of teeth whitening products. The site hyped Vibrant White without disclosing that it was affiliated with Ecommerce Solutions or the product, according to the ERSRP.
Procter & Gamble, which makes Crest Whitestrips, challenged Ecommerce Solutions, saying the "testimonials" were deceptive.
The ERSRP concurred with P&G. "At the time this advertising was disseminated, there was no disclosure on the Web site indicating that Ecommerce Solutions controls and operates the Web site and/or has a material connection with one of the products being reviewed on the Web site," it wrote. It concluded that visitors "may have been left with the lasting impression of the inflated popularity and superiority of the marketer's product."
Ecommerce Solutions said it is "extensively revising" the site and will disclose that it has a material connection with Vibrant White.
Earlier this summer, plastic surgery company Lifestyle Lift paid $300,000 to settle allegations by New York State Attorney General Andrew Cuomo over fake online reviews of its services that were, in fact, anonymously posted by company employees.
Why it matters: Online reviews and testimonials are currently on the radar screen of state and federal regulators. Competitors also have a stake in ensuring that companies do not post fake reviews or testimonials touting their own products. The Federal Trade Commission is in the process of updating its guides on testimonials. The revised guides are expected to cover this business practice explicitly.
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