Reverb Communications has settled a lawsuit with the Federal Trade Commission. The FTC was contending that Reverb posted consumer reviews on the iTunes App Store, which would classify as deceptive advertising practices.
“Companies, including public relations firms involved in online marketing need to abide by long-held principles of truth in advertising,” said Mary Engle, Director of the FTC s Division of Advertising Practices. “Advertisers should not pass themselves off as ordinary consumers touting a product, and endorsers should make it clear when they have financial connections to sellers.”
Reverb will remove the offending reviews from the App Store and will be required to disclose all professional links before making more endorsements. Notably, Reverb serves as the PR agency for Harmonix and the Rock Band franchise.
