FTC says ADT settles deceptive reviews charges
Source: Associated Press
FTC says ADT settles deceptive reviews charges
AP foreign, Thursday March 6 2014
NEW YORK (AP) U.S. regulators said Thursday that ADT Corp. has settled charges that it deceived consumers by paying people to recommend its home security products on media outlets without disclosing their connection to the company.
The Federal Trade Commission said ADT paid child-safety, home-security and technology experts more than $300,000 to promote its ADT Pulse security system online and on TV, including during a January 2011 segment on NBC's "Today" show. One expert received more than $200,000 and two of them received a free ADT Pulse security system and monthly monitoring service, which the FTC said is worth about $4,000.
ADT set up the media interviews through its public relations firms and booking agents, the commission said. The paid endorsers were introduced by show hosts and reporters as experts and their connection to ADT was never revealed. The endorsers also talked about other products, making the segment look as if it was an unbiased review.
ADT agreed to remove misrepresented reviews and endorsements and to disclose any future endorsements clearly, the FTC said.
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