What Might the FTC's Crackdown on Deceptive Online Marketing Mean for Social Media Companies?
Nobody really knows what sort of impact an online review of a product has on sales of that product. But we might soon get an idea.
The Federal Trade Commission recently made its first two key decisions aimed at cracking down on fake online reviews and the sale of fake social media "followers" to brands and internet influencers.
The first cost the CEO and owner of now-defunct social media influence company Duvemi a fine of at least $250,000 for allegedly selling "fake indicators of social media influence, including fake followers, subscribers, views, and likes to users of social media platforms..." That figure could be bumped up to $2.5 million if the FTC finds German Calas Jr. misrepresented his financial position.
Source Fool.com
