{"id":3053,"date":"2017-01-10T17:22:24","date_gmt":"2017-01-10T17:22:24","guid":{"rendered":"http:\/\/www.ftcguardian.com\/articles\/?p=3053"},"modified":"2017-03-18T08:53:39","modified_gmt":"2017-03-18T08:53:39","slug":"crackdown-on-fake-news-sites","status":"publish","type":"post","link":"https:\/\/www.ftcguardian.com\/articles\/crackdown-on-fake-news-sites\/","title":{"rendered":"Crackdown On Fake News Sites"},"content":{"rendered":"<h1><strong>FTC Accelerates Crackdown On Fake News Sites<\/strong><\/h1>\n<p>By Chip Cooper, Esq.<\/p>\n<p>We\u2019ve all seen headlines in search results like this one \u2013 \u201cXYZ Exposed: Miracle Diet or Scam\u201d.\u00a0 And perhaps we actually believed there was objective reporting or unbiased commentary behind the headline.\u00a0 But after reading the web page, it was clear that the headline was just a clever way to catch your attention and lure you to a sales page with an aggressive sales pitch.<\/p>\n<p>The Federal Trade Commission (FTC) has seen these headlines too, and the FTC doesn\u2019t think they\u2019re clever at all.\u00a0 In fact, the FTC believes they constitute deceptive and unfair trade practices, as indicated by the FTC\u2019s accelerated crackdown on affiliates of a popular diet drink with aggressive weight loss claims.<\/p>\n<p><strong>Modus Operandi<\/strong><\/p>\n<p>The modus operandi of these sites was to start with attention grabbing headlines such as the one listed above and these additional ones &#8211; \u201cNews 6 News Alerts,\u201d \u201cHealth News Health Alerts,\u201d or \u201cHealth 5 Beat Health News.\u201d<\/p>\n<p>The sites presented what appeared to be a skeptical commentator who raises the question of whether the diet drink is really effective.\u00a0 The commentator appeared to be objective; however, after a few paragraphs the commentator would conclude that use of the diet drink would result in a 25-pound weight loss in 4 weeks &#8211; all this without changing diet or exercise according to the FTC.\u00a0 The prices for the supplement ranged between $70 and $100.<\/p>\n<p><a class=\"popup_7TLM_Cheat_Sheet\" data-toggle=\"modal\" data-target=\"#popup_7TLM_Cheat_Sheet_modal\" href=\"#\"><img decoding=\"async\" class=\"aligncenter\" src=\"\/images\/button_banner-7TLM_Cheat_Sheet.png\" alt=\"\" \/><\/a><\/p>\n<p><strong>The FTC\u2019s Claims<\/strong><\/p>\n<p>When the FTC originally initiated law suits against these sites, Charles Harwood, Deputy Director of the FTC\u2019s Bureau of Consumer Protection stated: \u201cWe are alleging that nearly everything about these Web sites is false and deceptive\u201d.\u00a0 In addition, the FTC pointed out that the defendants aggressively promoted the deceptive ads by spending millions of dollars for placement on high volume websites resulting in millions of views by consumers and substantial sales.<\/p>\n<p>Specifically, the FTC contended that the offending sites:<\/p>\n<ul>\n<li>failed to disclose their material relationships involving the payment of affiliate commissions with the merchants of the products;<\/li>\n<\/ul>\n<ul>\n<li>failed to produce independent tests to support the claims made prior to public dissemination;<\/li>\n<\/ul>\n<ul>\n<li>included a section of \u201cconsumer comments\u201d that were completely fabricated;<\/li>\n<\/ul>\n<ul>\n<li>used infringing logos of reputable media outlets such as ABC, Fox News, CNN and Consumer Reports to give the false impression of credibility; and<\/li>\n<\/ul>\n<ul>\n<li>misappropriated the image of a French reporter for use on the sites.<\/li>\n<\/ul>\n<p><a href=\"http:\/\/go.ftcguardian.com\/bw4uoy\" target=\"_blank\"><img decoding=\"async\" src=\"https:\/\/s3.amazonaws.com\/ftcguardian\/images\/728x90-Un-vjy-FTC-GUARDIAN-banner-2.gif\" \/><\/a><\/p>\n<p><strong>The Settlements<\/strong><\/p>\n<p>The cases brought by the FTC were against six affiliates of the merchant that manufactured and supplied the weight loss supplement.<\/p>\n<p>In the settlements, the defendants agreed that they will permanently cease their allegedly deceptive practice of using fake news websites.\u00a0 In addition, the settlements require that the defendants cease making deceptive claims about their other products, including work-at-home schemes and penny auctions which most of them promoted.<\/p>\n<p>The big hammer in the settlements included fines in an aggregate amount which represented the affiliate commissions the defendants received through their fake news sites.<\/p>\n<p>These settlement results clearly indicate that the FTC aggressively pursued every dollar they could under the circumstances (the final amounts left most of them with few real assets, if any):<\/p>\n<ul>\n<li>one defendant\u2019s $2.5 million judgment was suspended when he pays $280,000 and records a $39,500 lien on his home;<\/li>\n<\/ul>\n<ul>\n<li>another defendant\u2019s fine of $204,000 was suspended pending the payment of $13,000 plus the proceeds from the sale of a BMW automobile, and<\/li>\n<\/ul>\n<ul>\n<li>still another defendant was suspended pending the payment of almost $80,000 over a 3 year period.<\/li>\n<\/ul>\n<p><strong>Conclusion<\/strong><\/p>\n<p>The take-aways from these cases include:<\/p>\n<ul>\n<li>fake news sites are virtually guaranteed to get you sued by the FTC,<\/li>\n<\/ul>\n<ul>\n<li>ditto for fake testimonials or user comments,<\/li>\n<\/ul>\n<ul>\n<li>diet supplements of any kind are high on the FTC\u2019s radar screen for regulatory scrutiny,<\/li>\n<\/ul>\n<ul>\n<li>the FTC is serious about enforcing its guidelines that affiliates are required to conspicuously disclose the fact that they are paid commissions for endorsements,<\/li>\n<\/ul>\n<ul>\n<li>consistent with the FTC\u2019s long-standing policy, advertising claims should be substantiated prior to public dissemination.<\/li>\n<\/ul>\n<p>The FTC continues to make it absolutely clear that the days of the \u201cWild, Wild West\u201d on the Internet, when it was open season on deceptive marketing practices, is clearly over for good.<\/p>\n<h3><strong>Here\u2019s How To Make Sure You, Your Business & Website Is FTC Compliant<\/strong><\/h3>\n<p>By now it should be clear how important it is for you to be FTC compliant. But how can you do that without spending $7,500-$8,000 or more on Internet Attorneys?<\/p>\n<p>Smart business owners around the world are doing it with the help of <u>FTC Guardian<\/u>.<\/p>\n<p><span style=\"font-weight: 400;\">FTC Guardian is a service that is 100% focused on helping to keep you get and stay FTC compliant and fully protected. <a href=\"https:\/\/go.ftcguardian.com\/bw4uoy\" target=\"_blank\">And right now, we are offering a free training to give you the knowledge, information, and guidance that you need to stay out of trouble with the Federal Trade Commission.<\/a><\/span><\/p>\n<p>The training is titled: <a href=\"https:\/\/go.ftcguardian.com\/bw4uoy\" target=\"_blank\"><strong>3 Tragic (Legal) Privacy Policy List Building Mistakes That Can Get You In Hot Water With The FTC Today &#8211; Resulting In Your Business Being Shut Down&#8230; And How To Solve It!<\/strong><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Here are some of the things you\u2019ll discover on the training:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Real-Life Examples of People Who Didn\u2019t Think They Were At Risk, But Who Got Nailed By The FTC, And Why It Could Happen To You, Too<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\">Why 2014 Was a Significant Year For Online Businesses, And Why You Should Be Worried!<\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\">The 3 Enormous Powers The FTC Has That Can Change Your Life \u2013 And Your Family\u2019s Life \u2013 Forever!<\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">How to Avoid FTC Claims When Collecting Leads With Optin Forms<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\">3 Privacy Policy Mistakes Every Digital Marketer Is Making, And Why You're In The FTC\u00a0Crosshairs.<\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">And Much More\u2026<\/span><\/li>\n<\/ul>\n<p><b>Remember: legal protection is a massively important part of your business, and it\u2019s one you cannot afford to ignore any longer.<\/b><\/p>\n<p><a href=\"https:\/\/go.ftcguardian.com\/bw4uoy\" target=\"_blank\">Go here to register for our next FREE training and make your business is FTC compliant today!<\/a><\/p>\n<p><b>Disclaimer: \u00a0This article is provided for informational purposes only. It\u2019s not legal advice, and no attorney-client relationship is created. Neither the author nor FTC Guardian, Inc. is endorsed by the Federal Trade Commission.<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The FTC believes Fake News Sites constitute deceptive and unfair trade practices, as indicated by the FTC\u2019s accelerated crackdown on affiliates of a popular diet drink with aggressive weight loss claims.  <\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_analytify_skip_tracking":false,"footnotes":""},"categories":[19,12],"tags":[21,28,31,35,26,34,55,30],"class_list":["post-3053","post","type-post","status-publish","format-standard","hentry","category-deceptive-advertising","category-ftc-compliance","tag-deceptive-advertising","tag-federal-trade-commission","tag-ftc","tag-internet-marketing","tag-native-ads","tag-native-advertising","tag-online-complicance","tag-truth-in-advertising"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.ftcguardian.com\/articles\/wp-json\/wp\/v2\/posts\/3053","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ftcguardian.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ftcguardian.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ftcguardian.com\/articles\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ftcguardian.com\/articles\/wp-json\/wp\/v2\/comments?post=3053"}],"version-history":[{"count":6,"href":"https:\/\/www.ftcguardian.com\/articles\/wp-json\/wp\/v2\/posts\/3053\/revisions"}],"predecessor-version":[{"id":3150,"href":"https:\/\/www.ftcguardian.com\/articles\/wp-json\/wp\/v2\/posts\/3053\/revisions\/3150"}],"wp:attachment":[{"href":"https:\/\/www.ftcguardian.com\/articles\/wp-json\/wp\/v2\/media?parent=3053"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ftcguardian.com\/articles\/wp-json\/wp\/v2\/categories?post=3053"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ftcguardian.com\/articles\/wp-json\/wp\/v2\/tags?post=3053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}