Reverb Settles with FTC over review allegations

Reverb, located in Twain Harte, California, represents a number of clients in the video-game industry, such as MTV Games, Ignition Entertainment, and Demiurge Studios. A release from the FTC said that the agency engaged in "deceptive advertising by having employees pose as ordinary consumers posting game reviews at the online iTunes store and not disclosing that the reviews came from paid employees working on behalf of the developers." The FTC alleges these activities occurred between November 2008 and May 2009.

Under the proposed settlement, Reverb is required to remove the reviews in question and bars Reverb and Snitker from making such comments in the future without disclosing their any relevant connections to the seller of the product or service.

When asked if her company disputes the FTC's allegations, Reverb Communications Vice President of Public Relations and Founder Tracie Snitker says, "We settled. We do [deny the allegations in the compliant]. That was the whole point. We agreed to disagree."

Stacy Ferguson of the Bureau of Consumer Protection at the FTC has yet to return a phone call for comment.

The case stems from the FTC's revised endorsements and testimonials guides issues in 2009. The agency specified that "the online post by a person connected to the seller, or someone who receives cash or in-kind payment to review a product or service, should disclose the material connection the reviewer shares with the seller of the product or service. This applies to employees of both the seller and the seller's advertising agency."