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FTC Cracking Down On Sham Web Reviews

Think a few manufactured reviews won't get you trouble? Think again. The Federal Trade Commission just hit a Tennessee-based company named Lending Learning Systems with a $250,000 fine for paying affiliate marketers to write glowing reviews about its DVD series. "Because those affiliates didn't disclose they were getting paid for the praise they heaped on the educational DVD series, called 'Learn and Master Guitar,' the FTC said the ads were deceptive and illegal," paidContent reports.

Bigger picture, the case is one of several that indicate the FTC is cracking down on such practices. In 2009, the FTC made it clear that the rules that apply to advertising and testimonials in print also apply to digital mediums. According to paidContent, the affiliates of Lending Learning Systems appear to have received a cut of all sales they directed to the parent company's website.

Read the whole story at Paid Content »

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