Internet Astroturfer Fined $300,000
New York Attorney General Andrew Cuomo announced yesterday that Lifestyle Lift, a cosmetic surgery company who posted fake reviews of their services on various websites, will have to pay $300,000 to the state of New York. Cuomo's office says this is the first US case to specifically target astroturfing on the internet.
"Internal emails discovered by Attorney General Cuomo's investigation show that Lifestyle Lift employees were given specific instructions to engage in this illegal activity. One e-mail to employees said: 'Friday is going to be a slow day — I need you to devote the day to doing more postings on the web as a satisfied client.' Another internal email directed a Lifestyle Lift employee to 'Put your wig and skirt on and tell them about the great experience you had.' In addition to posting on various Internet message board services, Lifestyle Lift also registered and created stand-alone Web sites, such as MyFaceliftStory.com, designed to appear as if they were created by independent and satisfied customers of Lifestyle Lift. The sites offered positive narratives about the Lifestyle Lift experience. Some of these sites purported to offer forums for users to add their own comments about Lifestyle Lift. In reality, however, Lifestyle Lift either provided all the 'user comments' themselves, or closely monitored and edited third-party comments to skew the discussion in favor of Lifestyle Lift."
We all know this shit goes on, all the time, but to email about it? they deserve more than 300k fine.. Will it stop this from happening? I doubt it.
What I really want to know is this: does this "anti-astroturfing" law apply to "Team Windows"? If so, watch out Softies, Cuomo's got your number....
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That's a small price to pay.. not even close to the cost of a decent condo. Cost of doing business, as they say...
Marketing department tells lies about their product. News at 11.
Now hopefully someone will look into the MS shills frequenting this and other technology sites.
As a company, you should be absolutely fine, unless you are so incredibly stupid as to put instructions like these down in writing, and making them so explicit that they cannot be read or weaseled out of in any conceivable way.
Every expression is true, for a given value of 'true'
The problem is not the fine. The problem is that the individuals who did this can hide under the corporation and not be held responsible. Why is it that if I did this on my own, I would personally be liable, but if I did so working for a corporation, the corporation is liable? Can I just do anything I want, so long as I have a shell corporation with a boss who tells me to do it?
If we held individuals responsible, then individuals would stand-up to the corporations and say no. But so long as they can clear their conscience by blaming their boss, and on up the chain, these things will happen. Oh, and punishing the CEOs doesn't fix it either, unless the CEO was really involved. Everybody seems to want to go to the person at the top. I want to beat the person at the bottom who actually did it.
According to TFA...
Lifestyle Lift is like a franchise. They have offices in a bunch of places, including 21 in New York, and they also advertised specifically in New York, hence harm was done in the state of New York. I'd think that the Michigan AG could now also perform the same type of fine, and probably other states that the company has offices in too.
A market without transparency is not a market. Consumers need accurate information to make informed decisions. The goal of major corporations is to deceive people as much as is legally possible for the greatest short-term profit possible. If the company in question gained more profit than they had to pay with fines, it's a win-win for them.
So, in a healthy market, astroturfing is illegal. I doubt this will effect any company behavior, since the fine was so low. They will just come up with some legal loophole like hiring contractors to conduct interviews with clients and put those up on the web. In a truly healthy market, any flagrant violations of the law by the CEO or a significant portion of the organization would result in the revoking of their corporate charter and the seizure and auction of all company property.
The difference is that you KNOW YOU'RE WATCHING AN AD, paid for by the company. There are also usually disclaimers on the ad, if you look saying "actor portryal, actors potraying real customers, real customers compensated, real customer not compensated."
No, they aren't real and a majority of the public wouldn't mistake it for real either. Aside from that, things like "Male Enhancement" are ambiguous products with ambiguous claims. About the only thing solid you can pull away from the advertisement is "These characters claim to have a better sexual experience", but what does that mean? A better orgasm? What does THAT even mean? How do you even measure it? Even if the product did nothing on the physiological level, a placebo effect can certainly cause results on the psychological level.
"When life gives you lemons, don't make lemonade. Make life take the lemons back!" -- Cave Johnson
Haven't companies learned by now that if you are going to instruct your people to do shady/illegal stuff that you should NOT put it in a memo. Just go by word of mouth "hey bob, make some fake posts"....dumb asses
BTW I find politicians a bit hypocritical. In politics the tech writers will write a nice constituant letter about their politician. They will then give it to a loyal constituant and ask them to sign it. So the constituant never wrote the words, never had the experience, but because they like the politician they will put their name to it...and this makes it 100% perfectly legal. So the next time you see grandma who says her politician is the second coming of christ just realize the words/experience may have come from some paid writer and grandma just signed her name to it.
I do not support "The Man". I also do not support your irrational stupidity
This is called marketing, or rather guerrilla marketing and there's nothing wrong with it. If they're service is false (i.e. doesn't actually work or is fraudulent) then I guess it would be false advertising.
But doing this sort of marketing isn't really illegal now is it?
Wow! You really miss the point. The lesson from Nixon is that the cover-up is what kills you.
The botched cover-up kills you. Do it right, and nobody will know.
"The overall problem is that the message still hasn't gotten out to people."
A more immediate problem is that this story on Slashdot is likely to bring Lifestyle Lift more customers. Look at the before and after photos.
"If you know that, why would you believe anything on the internet with testimonials, blogs, Google ad links, Myspace links and the like?"
In the particular case of Lifestyle Lift, it is difficult to detect what is actually happening. Are the before and after photos completely dishonest? I don't know.
Infomercials often take advantage of the weaknesses of people and there is an intense search for methods of intensifying the attack on those weaknesses.