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FTC Putting an End to Fake Endorsements and Beauty Ads

Posted on 15 December 2017

We've all scrolled through our social media timelines and seen those ads - our favorite Youtuber endorsing a product, or results that seem too good to be true. Then we're left to wonder "could this possibly be real?" Well, unfortunately, a lot of the time it isn't. However, the Federal Trade Commission has been fighting to end this uncertainty among consumers by putting strict restrictions on retailers and marketers.

Some of the biggest offenders in such scams are Tarr, Inc. With fake customer reviews, celebrity endorsements, and website, the company tricked thousands of unwitting consumers into buying counterfeit products. These tactics are illegal, giving the FTC reason to crack down on them as severely as possible.

The FTC stated "a vast network of online marketers and the three people behind it have agreed to settle Federal Trade Commission charges that they sold more than 50 weight-loss, muscle-building, and wrinkle-reduction products to consumers using unsubstantiated health claims, fake magazines and news sites, bogus celebrity endorsements, and phony consumer testimonials." The defendants had to pay a fine of over six million dollars. While this may seem like significant punishment, they were able to make over $179 million while scamming customers.

The good news is this may be the beginning of more trustworthy advertising and a reduction of spam on social media. Of course, it's always important to remain a knowledgeable shopper - but this will be sure to help, especially around the holidays!

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