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FTC brings its first case against fake paid reviews on Amazon

The Federal Trade Commission announced on Tuesday evening that it has brought its first case against using fake reviews to sell products online. The Commission said it will settle with defendant Cure Encapsulations Inc., a New York City-based company, and owner Naftula Jacobwitz, who it accused of making false claims about a weight loss supplement and paying a third-party website to post fake reviews on Amazon.
Fake reviews are a constant nuisance for Amazon shoppers, despite algorithms designed to safeguard its review system, and the company has hit back with a series of lawsuits against websites that offer to post fake verified reviews.
According to the FTC’s complaint, Cure Encapsulations sold pills with garcinia cambogia, a tropical fruit also called brindleberry that is sometimes used as a “natural” weight loss aid. Called Quality Encapsulations Garcinia Cambogia, the pills were sold only on Amazon. Jacobwitz paid a website called www.amazonverifiedreviews.com to post favorable reviews in order to boost its rating.
FTC brings its first case against fake paid reviews on Amazon
An exhibit from the FTC’s complaint against Cure Encapsulations Inc.
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