Google and iHeartMedia have been sued by the Federal Trade Commission as well as seven states, for Pixel 4 ads that were aired from 2019 to 2020. Reports say that the promos had influencers who advertised the phone despite not using it themselves. The Pixel 4 ads were broadcasted through iHeartMedia and other radio stations.
False Advertising
Google and iHeartMedia are barred by the FTC from false claims about ownership, regarding the Pixel 4 incident. The mentioned companies in hot water are required to prove that they are complying. They are asked to pay penalties worth $9.4 million, demanded by states like Arizona, California, Georgia, Illinois, Massachusetts, Texas, and New York.
José Castañeda, a spokesperson from Google, said that the company was happy to give its attention to the issue and that they take advertising laws seriously. He also expressed that Google didn't perceive the accusations as a lawsuit and that they were settling with all the mentioned states except one.
Samuel Levine, the FTC Consumer Protection Director, stated that the tech giant disrespected the truth-in-ads rules. He added that the FTC will not stop working with its partners in the states, crack down on misleading ads, and make violators pay the price.
Massachusetts Attorney General Maura Healey expressed, a people will trust advertisements more when paired with first-hand experience. She added that they expect radio ads to be transparent instead of resorting to fake endorsements. She also noted that the settlement ensures that Google and iHeartMedia will be compliant with state and federal law.
Although it's not new for advertisements to oversell their products. According to Engadget. Huawei and Samsung have been caught using DSLR-taken photos, and passing them off as being taken using the smartphone being advertised.
Ad Statements
There were several ads that came out, all with statements that make it appear like the endorsers have been using the phone, as mentioned in Tech Times. One testimonial stated that they love taking the perfect photo, which they can also do at night all thanks to Google Pixel 4.
A radio host even said that it's his favorite phone camera, since it can take photos in low light because of Night Sight mode. Another claimed that it took studio-like photos, and they used it to take photos of a soccer game, a meteor shower, and a rare spotted owl.
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Enforcement of the FTC
The FTC has proposed orders to make sure that Google and iHeartMedia will not repeat the same mistake. They are prohibiting Google from misinterpreting that the influencer advertising the item has used or owned it, as well as their experience with the particular item, as mentioned in ftc.gov.
They also aim to do the same for iHeartMedia. Aside from the two being required to distribute to certain people, they are also required to file compliance reports with the FTC. Their records should be kept so that the Commission may review them, and make sure that they are compliant.
The action will add to the FTC's effort against phony testimonials, fake reviews, as well as other deceptive endorsements. It promotes the FTC's work to protect and educate consumers. If a false advertisement has been seen or heard or shows evidence of fraud, scams, and bad business practices, they may report it via ReportFraud.ftc.gov.
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