Company accused of rewarding customers for good reviews
Giving fuel to the skepticism about the reliability of online reviews, the Federal Trade Commission is accusing a company of rewarding customers who praised its service over the web.
The agency on Friday said that AmeriFreight, a Georgia-based company that brokers car shipments, failed to disclose that it offered discounts and other incentives for people to post reviews online.
"Companies must make it clear when they have paid their customers to write online reviews," Jessica Rich, director of the FTC's Bureau of Consumer Protection, said in a statement. "If they fail to do that -- as AmeriFreight did -- then they're deceiving consumers, plain and simple."
AmeriFreight boasted about its positive reviews, noting on its website that it had "more highly ranked ratings and reviews than any other company in the automotive transportation business," according to the FTC.
"You don't have to believe us, our consumers say it all," AmeriFreight said on its site.
The FTC said the company offered customers a $50 discount to write a review and tacked on $50 if they didn't agree. People were also told that the reviews would be entered into a monthly contest to win another $100 and reminded those who hadn't yet posted a review of their obligation to do so.
AmeriFreight deceived consumers by neglecting to mention that the reviews were tied to incentives and not unbiased comments, the government watchdog said.
The company and the FTC reached an agreement to settle the case without any financial penalty. AmeriFreight must stop misrepresenting customer reviews as unbiased, if they are not, and must disclose any financial connection to those who endorse the company.
In agreeing to the settlement, AmeriFreight neither admitted nor denied the charges.
