FTC issued a warning to more than 700 companies: Do not "hire water army", otherwise you will be fined!

It is learned that the FTC (Federal Trade Commission) recently sent letters to more than 700 companies, warning them that they will face tens of thousands of dollars in fines for spreading false reviews or other forms of misleading propaganda.

In the era of social media, advertising and recommendations have become the main ways for online sellers to promote their businesses. However, with the rapid development of the e-commerce economy, many misleading contents aimed at increasing sales have also slowly emerged. Once such behavior becomes a phenomenon, it will definitely attract the attention of regulators.

Through this warning letter, the FTC conveys a message to the outside world: the FTC hopes that sellers and advertisers know that blurring the line between real content and advertising will result in very severe penalties. The government will crack down on this behavior to protect consumers.

The letters, of course, don’t necessarily indicate that recipients have done anything wrong, but are intended to warn sellers that the FTC is actively monitoring them, and are also in response to an April Supreme Court decision that overturned the agency’s ability to obtain civil penalties related to illegal conduct.

In the ruling, the high court found that the FTC can’t seek fines in federal court under its FTC Act, an issue that has dogged the commission for four years. The commission is asking Congress to enact legislation to restore that authority, as well as so-called criminal penalties, under which it can prosecute violators in administrative proceedings.

The warning letters, sent to more than 700 companies, are part of a series of measures taken by the commission as it seeks to "restore" its powers to punish crime.

Editor✎Irene/

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