The Biden administration has warned hundreds of US businesses that it is cracking down on the misleading use of fake endorsements on social media platforms, the Federal Trade Commission (FTC) announced on Wednesday
WASHINGTON (Pakistan Point News / Sputnik - 13th October, 2021) The Biden administration has warned hundreds of US businesses that it is cracking down on the misleading use of fake endorsements on social media platforms, the Federal Trade Commission (FTC) announced on Wednesday.
"The Federal Trade Commission is blanketing industry with a clear message that, if they use endorsements to deceive consumers, the FTC will be ready to hold them responsible with every tool at its disposal," the agency said in a press release.
The rise of social media has blurred the line between authentic content and advertising, leading to an explosion in deceptive endorsements across the marketplace and fake online reviews and other deceptive endorsements that often tout products throughout the online world, the FTC said.
"By sending a Notice of Penalty Offenses to more than 700 companies, the agency is placing them on notice they could incur significant civil penalties - up to $43,792 per violation if they use endorsements in ways that run counter to prior FTC administrative cases," the release explained.
The warning notice has already been sent to many large companies, top advertisers, leading retailers, top consumer product companies, and major advertising agencies, the FTC said.
