By Greg Hazley
The Federal Trade Commission said today that PR firm Reverb Communications will settle a complaint that employees posed as consumers reviewing video games by game developer clients on the iTunes store site.
“Companies, including public relations firms involved in online marketing need to abide by long-held principles of truth in advertising,” Mary Engle, director of the FTC’s Division of Advertising Practices, said in a statement.
Reverb, run by Tracie Snitker, has agreed to remove any posts that don't disclose a connection between the firm and its client and has vowed not to make similar posts in the future, under terms of the settlement.
Snitker sent over this statement to O'Dwyer's:
"During discussions with the FTC, it became apparent that we would never agree on the facts of the situation.
"Rather than continuing to spend time and money arguing, and laying off employees to fight what we believed was a frivolous matter, we settled this case and ended the discussion because as the FTC states: 'The consent agreement is for settlement purposes only and does not constitute admission by the respondents of a law violation.'"
The posts in question used pseudonyms that the FTC said "gave readers the impression the reviews were written by disinterested consumers." They were published between November 2008 and May 2009 covering games published by Reverb clients.
The FTC revised endorsement guidelines last year in a move closely watched in PR circles amid the rise of social media. The censure of Reverb is the first action against a PR firm since the revamp.
The FTC's 5-0 decision approving the complaint and settlement are subject to 30 days of public opinion. The public can comment at this link until Sept. 24.
Snitker is a former director of public affairs and government relations for the Men’s Health Network.
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