On November 28, 2022, the FTC and state attorneys general announced lawsuits against Google LLC and iHeartMedia, Inc. for airing nearly 29,000 deceptive endorsements by radio personalities promoting their use of and experience with Google’s Pixel 4 phone in 2019 and 2020. The FTC’s administrative complaint alleges that the two companies’ misrepresentations violated the FTC Act.
In a statement, Bureau of Consumer Protection Director Samuel Levine said the following:
“Google and iHeartMedia paid influencers to promote products they never used, showing a blatant disrespect for truth-in-advertising rules. he FTC will not stop working with our partners in the states to crack down on deceptive ads and ensure firms that break the rules pay a price.”
Google is a multinational technology company that specializes in internet-related services and products while iHeartMedia is the nation’s largest radio station owner, with more than 850 AM and FM radio stations. According to the FTC, Google hired iHeartMedia and 11 other radio networks in ten major markets to have on-air personalities record and broadcast endorsements of the Pixel 4 phone. However, it was found that Google provided iHeartMedia with scripts for Radio Personalities to use in recording advertisements endorsing the Pixel 4. In addition, the said personalities were not actual users of the phone before recording and airing the majority of the ads.
The proposed FTC orders and the state judgments settling the allegations:
Prohibit Google from misrepresenting that an endorser has owned or used, or about their experience with, certain products;
Prohibit iHeartMedia from misrepresenting that an endorser has owned or used, or about their experience with, any consumer product or service;
Require Google and iHeartMedia to distribute the order to certain people, file compliance reports with the Commission, and keep records to allow the FTC to ensure compliance.
The state judgments also require the two companies to pay $9.4 million in penalties.
Read the FTC’s full press release here.
The complaint can be found here.