Supplement Company Receives Fraud Charges from FTC over Fake Paid Amazon Reviews

Amazon

The first ever case of fraudulence on false paid Amazon reviews has been launched by the
Federal Trade Commission of US. A supplement company paid dimes to a third-party website
for writing deceptive reviews on Amazon to advertise one of their online products. Cure
Encapsulations, Inc is the company in question. It is owned by Naftula Jacobowitz.

The fake reviews were bought for garcinia cambogia, a weight-loss supplement. A native plant
of Indonesia, garcinia cambogia is given a misleading characteristic as a contributor to weight
loss, but the truth is it is highly functional to cause acute liver failure.

The website, Cure Encapsulations has paid is amazonverifiedreviews.com. They were instructed
to provide 4.3 to 5 Amazon rating with enticing reviews that show the supplement in the positive
light. FTC did their research and has found the falsehood in those statements.

FCC

Andrew Smith, the consumer protection director of FTC, asserted that most people buy a product
online believing in online reviews and ratings. But the rise of fake reviews and higher ratings on
a bad product is hurting both the shoppers and the companies that play as per rules. On February
19th, the FTC has filed the first complaint. Just under a week, the settlement has reached.

According to the settlement, Cure Encapsulations is prohibited from endorsing products with
misleading reviews even if it is from real customers. They now have to inform Amazon about
their paid reviews which in itself a violation of the rules of Amazon around the promotional
content. The company now also has to notify all the customers who have purchased the
supplement.

There is $50,000 due today after the FTC imposed a $12.8 million fine on the supplement
company for keeping them in check. The rest of the money is used for the enforcement of
judgment if the company misinterprets about the money on hand.

Nikhil Dornala

About the author: Nikhil Dornala

I am an average guy who believes hard work makes everything possible. I completed BE computer science and Diploma in Sound Engineering and can’t find my destiny on that. Music and Writing are the only things which make me happy and satisfied. Email: nikhil@imjatt.com

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *