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☆ Roomster must face lawsuit by U.S. FTC, six states over fake reviews
▼ + stars: | 2023-02-01 | by ( Jonathan Stempel | ) www.reuters.com time to read: +2 min

NEW YORK, Feb 1 (Reuters) - A U.S. judge on Wednesday ordered the roommate matching service Roomster to face a lawsuit by the Federal Trade Commission and six states claiming it used fake listings and reviews to take millions of dollars from people struggling to find affordable housing. In seeking a dismissal, the defendants said they had ceased the alleged improper conduct in 2018, that the FTC lacked power to sue, and the user reviews were not deceptive under state laws. The lawsuit sought civil penalties and an injunction against violations of federal and state unfair trade laws. In October, the FTC sought public comment on whether to adopt a rule to combat deceptive or unfair endorsement practices, such as by using fake reviews, suppressing negative reviews and paying for positive reviews. The case is FTC et al v Roomster Corp et al, U.S. District Court, Southern District of New York, No.

☆ FTC Weighs Stiff Penalties on Deceptive ‘Green’ Marketing
▼ + stars: | 2023-01-12 | by ( Dieter Holger | ) www.wsj.com time to read: +6 min

Officials are seeking public comment until Feb. 21 on nonbinding guidelines for how companies can make environmental marketing claims without breaching federal laws prohibiting deceptive advertising. “People who want to buy green products generally have to trust what it says on the box.”The agency’s so-called Green Guides, launched in 1992 and last updated in 2012, outline principles that apply to environmental marketing claims. The FTC has brought federal lawsuits against companies for making deceptive environmental claims, and the guides are cited in marketing laws in states such as California. The breadth of terms being considered reflects the significant evolution of green marketing over the past decade and companies need clearer guidance, said Caiti Zeytoonian, a lawyer at Morgan, Lewis & Bockius LLP who advises companies on green marketing and represents them before the FTC. Ms. Koss declined to say if the Supreme Court decision triggered the FTC’s consideration of new rules on green marketing.

Parafin, launched in 2020, works with so-called platform partners, or companies that other small businesses sell their products through. All the cofounders knew was that they wanted to build technology that would help small businesses. And they may not get their first contract payment from the government for as long as 120 days," Reed, the startup's CEO, told Insider. Helping small businesses manage their taxesComplYant's founder Shiloh Jackson wants to help people be present in their bookkeeping. HoneyBookWhile countless small businesses have been harmed by the pandemic, self-employment and entrepreneurship have found ways to blossom as Americans started new ventures.

☆ Is That Black Friday Sale Really a Deal? Ask These Shoppers
▼ + stars: | 2022-11-24 | by ( Ann-Marie Alcántara | ) www.wsj.com time to read: 1 min

The holiday season is here—and so are the stresses that go with shopping for gifts. For years, shoppers have struggled with fake reviews on Amazon and influencers hawking products for pay on their feeds. Now, they’re also facing rising inflation and shorter return windows.

NEW DELHI/BENGALURU, Nov 21 (Reuters) - India launched a crack down on Monday against fake reviews and unverified ratings in a bid to make online interaction and e-commerce more authentic and less misleading for users. Some companies have been criticised by consumers and various industry experts for downplaying negative reviews, or accepting fake ratings, making the vetting process difficult for buyers. The Department of Consumer Affairs set up a committee in June to develop a framework on checking fake and deceptive reviews in e-commerce, the Ministry of Consumer Affairs, Food & Public Distribution said. Online companies say they have internal checks in place to combat fake reviews, but currently failure to do so is not a compliance breach. If the guidelines become mandatory, companies could face action for unfair trade practice, for suppressing negative reviews or for enabling planting of fake reviews, Taparia said.

☆ Amazon files legal complaints in Italy, Spain against fake review brokers
▼ + stars: | 2022-10-20 | by ( ) www.reuters.com time to read: +2 min

MILAN, Oct 20 (Reuters) - U.S. e-commerce giant Amazon (AMZN.O) said on Thursday it had filed legal complaints in Italy and Spain as it steps up efforts globally to shut down fake review brokers. In its first criminal complaint in Europe, Amazon said it was targeting a "high-profile broker in Italy selling fake reviews", but did not name the person. Four- and five-star reviews can aid sales, especially if customers perceive them as unbiased. Amazon also filed a civil complaint in Spain against Agencia Reviews, alleging the Spanish-based operator was fully reimbursing customers once they publish a fake 5-star review. The company also said it had sent warnings to five websites in Germany that were directing visitors to a fake review broker, adding that all have since agreed to stop this activity by signing a cease and desist letter.

The four FTC commissioners voted three to one to begin the lengthy process of writing rules by seeking comments on the prevalence of fraudulent online reviews and junk fees. These are sometimes labeled "service charges" on phone bills or imposed by hotels as "resort fees." FTC guidelines already say that posting fake reviews and endorsements is illegal. And it has proposed a rule to ban junk fees by car sellers. The commission also voted to begin the process of updating existing rules governing funeral homes.

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