FTC Settles Its First Challenge Of Fake Amazon Reviews

Law360 (February 27, 2019, 6:29 PM EST) -- The Federal Trade Commission announced Tuesday it has settled a case accusing a weight-loss supplement company in New York federal court of paying for fake reviews of its product on Amazon, its first such challenge of paid product reviews.

Cure Encapsulations Inc. and its owner Naftula Jacobowitz agreed to a deal that largely suspends a $12.8 million judgment against the company, the FTC said in a release announcing it had resolved claims earlier this month that the company made bogus assertions about its garcinia cambogia weight-loss supplements.

Jacobowitz also paid a website called amazonverifiedreviews.com to keep his average rating above 4.3 stars,...

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