{"id":133,"date":"2024-11-14T09:00:00","date_gmt":"2024-11-14T09:00:00","guid":{"rendered":"https:\/\/blog.dontsaythat.com\/?p=133"},"modified":"2024-11-12T21:58:37","modified_gmt":"2024-11-12T21:58:37","slug":"ftc-gets-serious-about-fake-reviews","status":"publish","type":"post","link":"https:\/\/blog.dontsaythat.com\/?p=133","title":{"rendered":"FTC Gets Serious About Fake Reviews"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"133\" class=\"elementor elementor-133\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-b0deda8 e-flex e-con-boxed e-con e-parent\" data-id=\"b0deda8\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-3cdbbb4 elementor-widget elementor-widget-text-editor\" data-id=\"3cdbbb4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div><p>Good morning! This is the twenty-first edition of the Compliance Connect newsletter.<\/p><p>The goal is simple: to <strong>keep you in the loop<\/strong> on what the FTC and other regulatory agencies are up to so that you can protect yourself.<\/p><p>These newsletters will land in your inbox twice a week &#8211; Mondays and Thursdays.<\/p><p>Remember: this is NOT legal advice, only information!<\/p><p>Here\u2019s the rundown today\u2026<\/p><ul><li><strong>\ud83d\udcac FTC Cracks Down On Fake Reviews<\/strong><\/li><li><strong>\ud83e\udd1d Tax Prep Giant Settles With The FTC<\/strong><\/li><li><strong>\ud83d\udd28 How Contractors Can Get You In A Lawsuit<\/strong><\/li><li><strong>\ud83d\udd70\ufe0f One Of The First FTC Cases<\/strong><\/li><li><strong>3\ufe0f\u20e3 The 3 Main Responsibilities Of The FTC<\/strong><\/li><\/ul><div><b>\u00a0<\/b><\/div><div><p style=\"text-align: center; line-height: 1.5;\"><strong style=\"font-size: 20px; font-family: Arial, sans-serif; color: #222222;\">Compliance Digest: What You Should Read Today<\/strong><\/p><p><a href=\"https:\/\/www.theverge.com\/2024\/11\/6\/24289857\/ftc-fake-review-order-sitejabber-misleading-product-ratings\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>The FTC Orders Sitejabber To Stop Faking Product Reviews<\/strong><\/a><\/p><p>The FTC has accused Sitejabber, a review platform, of tricking people by pretending that its ratings and reviews came from customers who had actually used the products or services.<\/p><p>The FTC says Sitejabber collected reviews right after customers made a purchase, <strong>before they even received or used the items<\/strong>. This made average ratings and review counts higher than they really were.<\/p><p>Sitejabber also gave businesses tools to show these early reviews on their own websites, making it seem like real customer feedback.<\/p><p>Under the new agreement, <strong>Sitejabber must stop making or helping with any fake claims about reviews<\/strong>.<\/p><p>An interesting note about this case is that it was a <strong>5-0 ruling by the FTC<\/strong>, meaning both the Republican and Democratic commissioners agreed with the action.<\/p><p>It also coincides with the FTC&#8217;s <a href=\"https:\/\/blog.dontsaythat.com\/?p=97\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>new rules<\/strong><\/a> on fake reviews and testimonials.<\/p><p><a href=\"https:\/\/www.ftc.gov\/news-events\/news\/press-releases\/2024\/11\/ftc-action-stops-hr-blocks-unfair-downgrading-practices-deceptive-promises-free-filing\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>H&amp;R Block Settles With The FTC<\/strong><\/a><\/p><p>The FTC and H&amp;R Block appear to have a reached a settlement on the case we discussed in <a href=\"https:\/\/blog.dontsaythat.com\/?p=97\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>edition 15<\/strong><\/a>.<\/p><p>H&amp;R Block was accused of <strong>promoting its tax filing products as \u201cfree,\u201d<\/strong> but many consumers were not eligible for the free service, as it was limited to \u201csimple returns.\u201d<\/p><p>The settlement requires H&amp;R Block to&#8230;<\/p><ul><li>Allow users to downgrade to cheaper products WITHOUT needing to contact customer service or losing previously entered data.<\/li><li><strong>Pay $7 million<\/strong> to redress consumers harmed by its practices.<\/li><li>Disclose eligibility limitations in \u201cfree\u201d advertising and make changes to improve transparency for the 2025 tax season.\u00a0<\/li><\/ul><p>Here&#8217;s a link to the proposed <a href=\"https:\/\/www.ftc.gov\/system\/files\/ftc_gov\/pdf\/d09427_-_hr_block_consent_agreement_package_without_signatures.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>settlement<\/strong><\/a>.<\/p><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8bec3d0 elementor-widget elementor-widget-image\" data-id=\"8bec3d0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"768\" src=\"https:\/\/blog.dontsaythat.com\/wp-content\/uploads\/2024\/11\/GettyImages-1332832474-1024x768.jpg\" class=\"attachment-large size-large wp-image-137\" alt=\"\" srcset=\"https:\/\/blog.dontsaythat.com\/wp-content\/uploads\/2024\/11\/GettyImages-1332832474-1024x768.jpg 1024w, https:\/\/blog.dontsaythat.com\/wp-content\/uploads\/2024\/11\/GettyImages-1332832474-300x225.jpg 300w, https:\/\/blog.dontsaythat.com\/wp-content\/uploads\/2024\/11\/GettyImages-1332832474-768x576.jpg 768w, https:\/\/blog.dontsaythat.com\/wp-content\/uploads\/2024\/11\/GettyImages-1332832474-1536x1152.jpg 1536w, https:\/\/blog.dontsaythat.com\/wp-content\/uploads\/2024\/11\/GettyImages-1332832474-2048x1536.jpg 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-034ab27 elementor-widget elementor-widget-text-editor\" data-id=\"034ab27\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"line-height: 1.5; text-align: center;\"><strong style=\"font-family: Arial, sans-serif; color: #222222; font-size: 20px;\">Can Contractors Open You Up To A Lawsuit?<\/strong><\/p>\n<p>Many business owners improperly use contractors in their business.<\/p>\n<p>Contractors are appealing &#8211; you typically don&#8217;t have to pay as much in taxes, and there are fewer regulations.<\/p>\n<p>However, if you improperly use them, you can get into A LOT of trouble.<\/p>\n<p>The FTC recently settled a $7 million case with a gig economy company, <a href=\"https:\/\/www.ftc.gov\/news-events\/news\/press-releases\/2024\/07\/ftc-takes-action-against-gig-work-company-arise-virtual-solutions-deceiving-consumers-about-pay\" target=\"_blank\" rel=\"noopener noreferrer\"><strong><em>Arise Virtual Solutions<\/em><\/strong><\/a>, that classified workers as contractors.<\/p>\n<p>The Department of Labor also stepped in, arguing that these workers should have been treated as employees, with all the associated taxes and benefits.<\/p>\n<h3>Contractor or Employee?<\/h3>\n<p>If you&#8217;re using contractors in your business, there\u2019s one critical question you need to ask: Are these contractors truly independent, or are they so integrated into your business that they could be seen as employees?<\/p>\n<p>If a contractor is earning most of their income from your business and lacks independent clients, they MAY be classified as an employee, meaning you\u2019re responsible for payroll taxes, benefits, and possibly back pay.<\/p>\n<h3>How To Avoid Misclassification<\/h3>\n<p><strong>#1 &#8211; Encourage Independent Business Operations<\/strong>: Ensure contractors have their own business set up, preferably with other clients. This strengthens their independence from your company.<\/p>\n<p><strong>#2 &#8211; Use Clear Contracts<\/strong>: Draft solid contractor agreements, specifying that they are responsible for their equipment and risk. To avoid potential legal issues, have contractors sign both as their business entity AND personally.<\/p>\n<p><strong>#3 &#8211; Be Cautious with Control<\/strong>: Requiring contractors to use company-owned equipment or controlling their hours closely can blur the lines between an employee and a contractor.<\/p>\n<p><strong>#4 &#8211; Consider Using International Contractors<\/strong>: Hiring contractors outside the U.S. may reduce risk, as international contractors are less likely to trigger domestic employment laws.<\/p>\n<p>When in doubt, consult an attorney who specializes in employment law to ensure your contractor relationships are structured correctly.<\/p>\n<p>A misclassification case can be devastating, leading to hefty fines and liability from multiple agencies.<\/p>\n<p>For more details, check out <a href=\"https:\/\/www.youtube.com\/watch?v=9Aa-zW7BtnI\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>this episode<\/strong><\/a> of the <em>Don&#8217;t Say That <\/em>podcast.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7b68eef elementor-widget elementor-widget-text-editor\" data-id=\"7b68eef\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"line-height: 1.3; text-align: center;\"><strong style=\"font-size: 20px; font-family: Arial, sans-serif; color: #222222;\">Did You Know\u2026<\/strong><\/p><p>One of the <a href=\"https:\/\/www.ftc.gov\/system\/files\/documents\/commission_decision_volumes\/volume-4\/vol4.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>first cases<\/strong><\/a> brought by the FTC against a company for deceptive marketing was when it sued the Royal Baking Powder Company.<\/p><p>The FTC claimed that they hid the fact that it changed the recipe for its popular baking powder. They were also accused of falsely claiming that the price of their baking powder was half off, even though the price was the same. The case was decided in 1922.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-cf5c929 elementor-widget elementor-widget-image\" data-id=\"cf5c929\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"480\" height=\"480\" src=\"https:\/\/blog.dontsaythat.com\/wp-content\/uploads\/2024\/11\/480px-Seal_of_the_United_States_Federal_Trade_Commission.svg-1.png\" class=\"attachment-large size-large wp-image-135\" alt=\"\" srcset=\"https:\/\/blog.dontsaythat.com\/wp-content\/uploads\/2024\/11\/480px-Seal_of_the_United_States_Federal_Trade_Commission.svg-1.png 480w, https:\/\/blog.dontsaythat.com\/wp-content\/uploads\/2024\/11\/480px-Seal_of_the_United_States_Federal_Trade_Commission.svg-1-300x300.png 300w, https:\/\/blog.dontsaythat.com\/wp-content\/uploads\/2024\/11\/480px-Seal_of_the_United_States_Federal_Trade_Commission.svg-1-150x150.png 150w\" sizes=\"(max-width: 480px) 100vw, 480px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2baca40 elementor-widget elementor-widget-text-editor\" data-id=\"2baca40\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"text-align: center; line-height: 1.2;\"><strong style=\"color: #222222; font-family: Arial, sans-serif; font-size: 20px;\">Quick Compliance Tip: The 3 Main Responsibilities Of The FTC<\/strong><\/p><p>We talk a lot about the FTC, especially when it comes to compliant marketing.<\/p><p>However, the FTC&#8217;s responsibilities go further than that. Here&#8217;s a brief overview of the key responsibilities of the FTC.<\/p><p><strong>1. Advertising Laws<\/strong><\/p><p><strong>Section 5 of the FTC Act<\/strong> is a deceptive trade practices provision.<\/p><p>Basically, it sets forth the FTC\u2019s core purpose of ensuring advertisements are truthful and don\u2019t contain express misrepresentations or create an improper \u201cnet impression.\u201d\u00a0<\/p><p>This is the basis for most of the FTC cases that we talk about in this newsletter.<\/p><p><strong>2. Privacy &amp; Data Protection<\/strong><\/p><p>With the advancement of the internet and the collection of credit card numbers, privacy and data protection are atop the list of FTC concerns.<\/p><p>This led to the <strong>largest settlement in FTC history<\/strong> when, in 2019, the FTC fined Facebook $5 billion for privacy violations.<\/p><p>Companies not only have names and contact information, but all kinds of data, including family connections, product preferences, places people visit, and so on.<\/p><p><strong>3. Overseeing Mergers &amp; Acquisitions<\/strong><\/p><p>The FTC has targeted monopolies for over 100 years. This is pretty much WHY the FTC was founded.<\/p><p>The problem with monopolies is that when one company controls the product category on the market, they control the supply chain, the pricing, and everything else about the product, making the consumer completely beholden to them.<\/p><p>One of the roles of the FTC is to look out for customers&#8217; interests.<\/p><p>History is full of examples of the FTC stopping mergers that it believes will harm consumers.<\/p><p>A recent example is the merger between <a href=\"https:\/\/www.retaildive.com\/news\/updated-judge-rules-against-staples-office-depot-ending-merger-deal\/418945\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Staples and Office Depot<\/strong><\/a>. As long as the two companies remain separate, the customer has a choice. But if they merge, then customers would only have the illusion of choice, which is a big problem<\/p><p>Under the leadership of Lina Khan, this has been a major focus of the agency. This has proven to be <a href=\"https:\/\/qz.com\/ftc-lina-khan-antitrust-regulation-criticism-harris-1851673064\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>controversial<\/strong><\/a>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Good morning! This is the twenty-first edition of the Compliance Connect newsletter. The goal is simple: to keep you in [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":136,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[24],"tags":[236,238,240,229,244,237,234,227,239,230,243,155,235,242,222,228,232,231,233,241],"class_list":["post-133","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ftc-compliance-connect","tag-avoid-fake-reviews","tag-business-compliance-tips","tag-compliance-software-complily","tag-contractor-misclassification-risks","tag-data-privacy-laws-ftc","tag-deceptive-advertising-rules","tag-fake-reviews-crackdown","tag-ftc-compliance-newsletter","tag-ftc-consumer-protection","tag-ftc-contractor-guidelines","tag-ftc-responsibilities-overview","tag-hr-block-settlement","tag-independent-contractor-risks","tag-mergers-and-acquisitions-ftc","tag-passive-income-compliance","tag-protect-business-from-ftc","tag-regulatory-updates-ftc","tag-sitejabber-fake-reviews","tag-tax-prep-compliance","tag-truth-in-advertising"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>FTC Gets Serious About Fake Reviews -<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blog.dontsaythat.com\/?p=133\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"FTC Gets Serious About Fake Reviews -\" \/>\n<meta property=\"og:description\" content=\"Good morning! This is the twenty-first edition of the Compliance Connect newsletter. The goal is simple: to keep you in [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/blog.dontsaythat.com\/?p=133\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61555269426442\" \/>\n<meta property=\"article:published_time\" content=\"2024-11-14T09:00:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/blog.dontsaythat.com\/wp-content\/uploads\/2024\/11\/DST-Blog-Images-5.png\" \/>\n\t<meta property=\"og:image:width\" content=\"768\" \/>\n\t<meta property=\"og:image:height\" content=\"432\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Andrew Lantz\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Andrew Lantz\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" 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