Four Companies Settle NY AG Charges They Posted Fake Online Reviews, Endorsements
Four companies accused of having a role in posting fraudulent online reviews and endorsements settled with the New York attorney general's office and will pay penalties ranging from $15,000 to $50,000, said state AG Eric Schneiderman Thursday in a press…
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release. “Consumers rely on reviews and other endorsements on the Internet to inform themselves in making daily purchasing decisions,” he said in the release. The office's separate investigations into what he called "astroturfing over the Internet" tells companies "consumers deserve honesty and transparency in their reviews, endorsements and related content,” he said. The settlements require companies to be honest and transparent in such reviews. The companies that settled are: California-based online entertainment network Machinima, which will pay a $50,000 fine; cosmetic and beauty supply chain Premier Retail Group, with locations around the country, paying $50,000, of which $30,000 is suspended assuming compliance with the settlement agreement; California-based Internet marketing company Here2Four, which will pay $15,000; and New York-based Rani Spa, which will pay $50,000, of which $48,000 is suspended assuming compliance with the agreement.