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Volume XIII, Number 28

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Google, iHeartMedia Pay $9.4 Million to Settle FTC and State Allegations of Deceptive Endorsements

The FTC and Attorneys General from seven states announced settlements with Google and iHeartMedia for disseminating thousands of allegedly deceptive endorsements, with the two companies being required to pay $9.4 million in state-levied penalties.

The allegations surround the radio marketing of the Google Pixel 4 smartphone. According to the FTC’s complaint, Google paid iHeartMedia more than $2.6 million to have on-air radio personalities read Google-scripted endorsements without having used, or even seen, the Pixel 4 device. The English and Spanish language endorsements, which were read nearly 30,000 times by dozens of endorsers in at least 10 major media markets, included personal anecdotes about the Pixel 4, including:

  1. “I’ve been taking studio like photos of everything.”

  2. I’ve used the Pixel 4 to take photos of “my son’s football game.”

  3. “I didn’t miss a second of my daughter’s school play even though I was in the last row.”

The FTC’s complaint quotes extensively from emails written by one or more iHeartRadio employees in which iHeartRadio told Google that its on-air personalities were hesitant to endorse the product without using it. There were also multiple email requests over several months requesting Google to send iHeartRadio the devices to share with the would-be endorsers.

The FTC’s proposed order against Google prohibits the company from misrepresenting that an endorser has owned or used certain products or about their experience with those products. The proposed order with iHeartMedia prohibits it from misrepresenting that an endorser has owned or used any product or service or about their experience with the product or service.

These cases serve as a useful reminder that the FTC’s Endorsement Guides set forth a simple advertising truth: “When the advertisement represents that the endorser uses the endorsed product, the endorser must have been a bona fide user of it at the time the endorsement was given.” 

Copyright © 2023, Hunton Andrews Kurth LLP. All Rights Reserved.National Law Review, Volume XII, Number 335
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About this Author

Phyllis H. Marcus Partner Consumer Products Food Industry Retail Practices
Partner

With 17 years of experience at the FTC, Phyllis brings a unique advertising and children’s privacy vantage point to our clients.

Phyllis heads the firm’s advertising counseling practice, and focuses on all aspects of advertising, from the initial development of a claim to its ultimate defense in the marketplace. Phyllis’s practice includes claim creation and substantiation, pre-acquisition due diligence, dissemination in traditional and digital media, and both offensive and defensive competitor challenges. She also counsels clients on the intricacies of compliance with the Children’...

202-955-1810
Samuel J. Thomas Litigation Attorney Hunton Andrews Kurth Law Firm Washington, DC
Associate

Sam’s wide-ranging practice focuses on class action and complex commercial litigation.

A litigation associate in the Washington, DC office, Sam represents clients in matters big and small from multi-district litigation to commercial lease disputes and non-party subpoenas. Sam also works closely on compliance issues, helping clients to safely navigate federal and state regulatory regimes. He maintains an active pro bono practice focused on asylum and relief from removal. Working with clients across a broad range of industries including food service, retail, and more, Sam has the...

202-419-2059
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