Fake testimonials could cost you $750,000 plus 14 years.
I came across an article on "fake testimonials", spotlighted by hubba.com this morning. It's an interesting and important read.
Quoting from the cbc.ca news article:
"False or misleading advertising is prohibited by the Competition Act. Any business, website, or person who makes, buys, or sells fake testimonials could be liable — both the actor providing the testimonial and the company that hires them.
As an actor, Sanpan may not know how the videos will be used, or what disclaimer will appear alongside them. Josephine Palumbo, a deputy commissioner with the Competition Bureau, says her organization 'wants to ensure that truth in advertising applies in whatever forum those communications are made.' (Marketplace/CBC) Individuals, including actors like Sanpan, could serve up to 14 years in prison and could be liable for penalties up to $750,000 under the Competition Act if they know they will be used in deceptive advertising. Corporations could face fines of up to $10,000,000."
I assume this law and specific penalties pertain to Canada, but there are truth in advertising laws here in the U.S.
Please share your thoughts about paid testimonials...
All the best!