Events & AwardsMay 27, 2026
5 Security Tips for Las Vegas Jewelry Market Week 2026This year, it’s what could happen outside of show hours that worries JSA Executive Vice President Scott Guginsky.
TechnologyJul 06, 2014
Government agencies take action on ‘astroturfing’
When it comes to social media, “astroturfing” has nothing to do with sports. The JVC’s Suzan Flamm explains more about this practice and how federal agencies are cracking down.
Suzan R. Flamm, Esq., (suzan@jvclegal.org) is assistant general counsel of the Jewelers Vigilance Committee, which provides general educational resources and jeweler-specific advice. The advice is strictly the opinion of the JVC.
Today, social media is one of the fastest and most effective ways to communicate information. People use it as a tool to decide where to shop, what to buy and what to eat, relying on photos and reviews posted on websites like Foursquare, Yelp, Citysearch and Google Local. Not surprisingly, positive consumer reviews can drive business, as many shoppers believe them to be the disinterested opinions of buyers like themselves.
Unfortunately, they may not be unbiased, with some companies paying for favorable online reviews and endorsements -- without disclosing the monetary connection. Both federal and state law enforcement have recently stepped in to stop this deceptive trade practice.
Astroturfing
The growing importance of Internet marketing has created a new market for firms offering online reputation management services. These firms offer protection from defamatory online reviews and generally supervise a client’s reputation on the web. Some firms, however, are hired by companies not only to manage their reputations but to artificially enhance them.
In a practice called “astroturfing” these firms will post fake online reviews, or pay others to do so. These paid-for reviews are written to make readers believe they are honest opinions but, like Astroturf, they are inorganic imitations of the real thing.
These reputation management practices have raised several legal and ethical concerns. Posting false reviews via social media websites and other online sources constitutes misrepresentation and unfair businesses practices, offenses that are regulated by various government agencies.
The rise of deceptive online advertising has caught the attention of both federal and state-level law enforcement. Businesses involved in posting fake reviews online or hiring a reputation management company to do so on their behalf are now at risk of attracting scrutiny from the Federal Trade Commission, state attorneys general or local departments of consumer protection.
Last year, the New York State Attorney General took action against 19 companies found to be engaged in deceptive online practices involving astroturfing. A year-long investigation, dubbed “Operation Clean Turf,” was initiated in 2013 and revealed that companies were flooding consumer-review websites with fictional evaluations.
The companies created fake online profiles on consumer review websites and paid freelance writers, some as far away as the Philippines and Bangladesh, from $1 to $10 per phony review. The 19 companies were found to have violated multiple state laws that prohibit false advertising and deceptive business practices.
As a consequence of the Attorney General’s action, the targeted companies will cease the practice, and pay more than $350,000 in penalties.
In announcing the agreement, the Attorney General unequivocally condemned the practice of flooding the Internet with bogus consumer reviews, calling it the “21st century version of false advertising.”
False Endorsements
The FTC has also taken action against deceptive advertising, online and on the air.
The agency recently cracked down on the use of paid-for endorsements disguised as impartial expert testimony. In March of this year, a home security company was charged with misrepresenting paid endorsements as independent reviews on various blogs and other online platforms, as well as in radio and television spots. Paid company endorsers were introduced as child safety, home security or technology experts and the connection between the endorsers and the company was not disclosed, even though they had been paid over $300,000 to pitch the company’s products.
The investigation concluded with a settlement agreement prohibiting the company from engaging in any future misrepresentation in their advertising. The settlement also requires that, going forward, the company disclose any monetary connection with its endorsers.
FTC Endorsement Guides
The FTC Endorsement Guides mandate that if a relationship exists between the marketer of the product or service and the endorser or review writer it should be disclosed, particularly if the relationship is not obvious or reasonably expected by the audience. Under the law, a practice is deemed deceptive if it misleads “a significant minority” of consumers.
If a connection is not disclosed, companies run the risk of government regulatory action based on charges of deceptive business practices. They also run the risk of being sued by competitors for false advertising.
While writing or soliciting fake reviews is prohibited, businesses are allowed to invite real customers to review their products or services online. However, if something of value is offered in return then the customer should be advised to disclose what they received within the review. An offer of something of value could induce an endorser to write an exaggerated or misleading review. Thus, a disclosure will allow consumers to individually determine the credibility of those reviews.
Conclusion
Ensuring the validity of online reviews and endorsements is important for the protection of both businesses and consumers. The rise of astroturfing and false endorsements on the Internet has caught the attention of state and federal authorities. Companies engaged in these practices could face regulatory action or fines, or lawsuits by competitors, and are thus well-advised to correct their advertising practices to avoid those risks.
Disclosure is the best way a business can ensure compliance with the FTC Endorsement Guides and with state law. For additional information about legal compliance in this area, contact JVC or visit our website at www.jvclegal.com.
More on Technology
The Latest
ColumnistsMay 27, 2026
What Jewelers Can Learn From Luxury Fashion’s Digital PlaybookHigh-end fashion houses know how to emotionally connect with customers online. Retail jewelers should take note, Emmanuel Raheb writes.
Events & AwardsMay 27, 2026
Couture’s ‘The Iridescence’ Will Showcase 7 Emerging Jewelry DesignersThe designers are the third cohort of mentees from the show’s Belonging @ Couture mentorship program.
Brought to you by
All Eyes on Gold Prices. Alternatives to Look For. And What to BEWARE of in VegasAs gold prices rise, today’s retailers are looking for alternatives at prices that will appeal to wider audiences.
ColumnistsMay 26, 2026
The Key Mindset for Better Trade Show BuyingBuying discipline at trade shows starts with clarity about your inventory levels, Smith writes.
Weekly QuizMay 21, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Events & AwardsMay 26, 2026
12 JCK Talks Sessions to Add to Your Las Vegas ScheduleThe trade show’s education series returns, with sessions on retail trends, AI, watches, marketing, corporate responsibility, and more.
Events & AwardsMay 26, 2026
CBG Brings Its Curated Designer Project to Las Vegas ShowThe Curated Designer Project has expanded to highlight eight independent jewelry designers during CBG’s Las Vegas show.
Brought to you by
How Modern Training Is Becoming a Competitive Advantage for Jewelry RetailersWith the trade and customer trust in mind, GIA® developed NextGem™ – on-demand training designed specifically for retail.
TrendsMay 26, 2026
Amanda’s Style File: A Cooldown Is ComingBring a cool tone to your summer jewelry with these white metal pieces.
Events & AwardsMay 22, 2026
Instore Buys JA New York ShowThe deal closed this week, which means Instore will produce the JA NY show slated to take place this fall.
FinancialsMay 22, 2026
Richemont’s Jewelry Brands Lead the Charge in Q4The company’s jewelry sales were up in Q4 and the fiscal year, with Richemont raising prices in part because of the cost of gold.
CollectionsMay 22, 2026
Leigh Maxwell Celebrates 5 Years at Couture With ‘Bauble’ CollectionThe “Bauble” capsule collection of colorful one-of-a-kinds includes our Piece of the Week, the “Bauble” earrings, featuring rose zircon.
MajorsMay 22, 2026
Stuller’s New Packaging, Display Catalog Is Out The updated catalog has a newly dedicated section for gift wrapping.
PodcastsMay 21, 2026
Episode 5: Sotheby’s Frank Everett Puts the Auction Market in PerspectiveEverett covers colored stones’ surging popularity, the mellow return of the “Mellon Blue,” and his “The Devil Wears Prada” doppelgänger.
IndependentsMay 21, 2026
Springer’s Jewelers’ New Flagship Will Serve Next-Gen Luxury ShoppersFourth-generation CEO Lilly Mullen wants to emphasize experience, connection, and personalized service.
Events & AwardsMay 21, 2026
JA Announces Nina Pugliese Memorial ScholarshipThe new award, created in partnership with Henne Jewelers, honors the late designer’s legacy through supporting jewelry education.
SourcingMay 21, 2026
Botswana, Angola Join WFDBThe addition of the diamond-producing countries as nation affiliated members broadens the federation’s global representation, WFDB said.
CrimeMay 20, 2026
NYPD Warns of Jewelry Swap Scams Targeting SeniorsThe NYPD is warning elderly New Yorkers to keep their jewelry hidden when walking outside to avoid being a target.
IndependentsMay 20, 2026
Adornment & Theory’s New Store Feels Like Home Designer Viviana Langhoff has realized her dream of owning a space for her Chicago jewelry store that looks and feels like her brand.
Events & AwardsMay 20, 2026
Here Is Couture’s 2026 Education Lineup The sessions will run from Friday, May 29, to Sunday, May 31, with one being a live taping of an episode of Couture’s podcast.
Lab-GrownMay 20, 2026
Savannah Friedkin Jewelry Names New CEOFormer Stephanie Gottlieb Fine Jewelry executive Morgan P. Richardson is joining the lab-grown diamond jewelry brand.
WatchesMay 19, 2026
Here’s the AP x Swatch Pocket Watch That Caused PandemoniumThe $400 pocket watch is a blend of Audemars Piguet’s iconic eight-sided Royal Oak and Swatch’s unserious Pop watches from the ‘80s.
CollectionsMay 19, 2026
Chris Ploof’s New Collection Makes an Ancient Metal ModernWith gold prices on the rise, the “Modern Electrum” collection uses an alternative, non-tarnishing metal alloy composed of gold and silver.
IndependentsMay 19, 2026
Ellen and Michael Fruchtman Retire, Sell Marketing Agency Fruchtman Marketing has new owners, Erin Moyer-Carballea and Manuel Carballea, and will relocate to Miami.
ColumnistsMay 19, 2026
Peter Smith: The (Mostly) Immutable Sales TruthsIn a column for the 2026 State of the Majors issue, Smith lists 10 time-tested principles about sales that still ring true.
ColumnistsMay 18, 2026
Edahn Golan: What a K-Shaped Economy Means for Fine JewelryIn a column for the 2026 State of the Majors issue, Golan spells out how the growing economic divide in the U.S. is reshaping the market.
CollectionsMay 18, 2026
Foundrae’s New Collection Taps Into JoyThe “Limitless Expansion of Joy and Hope” collection evokes summer through colored gemstones and motifs of butterflies and florals.
