Dreamstime/James Group Studios Inc. Online sportsbooks and casinos are becoming almost as popular around the US as the nation’s traditional pastime, baseball. Now, online gambling operators are probably thinking of the famous words of the late New York Yankees player Yogi Berra : “It’s like deja-vu, all over again.”
That’s because the Federal Trade Commission (FTC) is once again putting businesses on notice that anyone they pay to endorse them needs to disclose that paid status to consumers. The FTC has issued similar reminders many times before to other companies in other industries. This time around, those getting the talking to are entities like MGM Resorts International and Caesars Entertainment, known in online gambling circles for their BetMGM and Caesars Sportsbook and Casino products, respectively.
Caesars and MGM were among more than 700 companies the FTC notified last month. The FTC says these businesses are “using endorsements to deceive consumers.”
The deception is in the form of “fake reviews and other misleading endorsements,” according to the FTC.
The FTC announcement said : “By sending a Notice of Penalty Offenses to more than 700 companies, the agency is placing them on notice they could incur significant civil penalties — up to $43,792 per violation — if they use endorsements in ways that run counter to prior FTC administrative cases.” However, the FTC announcement also said: “A recipient’s presence on this list does not in any way suggest that it has engaged in deceptive or unfair conduct.” FTC media contact for this announcement, Jay Mayfield , didn’t immediately return Online Poker Report ‘s request for comment. OPR also contacted representatives of Caesars and MGM for this story. How the FTC endorsement rules work
The tricky part of this situation is that the companies may not be the ones failing to disclose endorsements. Paid social media influencers, bloggers accepting gifts for coverage, or other advertisers may be failing to properly disclose their relationships. Even so, if the FTC discovers violations, the brands will be the ones paying the fines.
Such rulings are rare, though. When the FTC begins to act on alleged violations, its efforts often […]
Click here to view original web page at www.onlinepokerreport.com
