Out-Law News 2 min. read
15 Jul 2009, 3:58 pm
New York Attorney General Andrew Cuomo said that the posts constituted breaches of consumer protection law, false advertising and deceptive commercial practices. It is thought to be the first legal penalty for fake reviews or 'astroturfing', so-named because the practice fabricates grass roots support.
"This company’s attempt to generate business by duping consumers was cynical, manipulative, and illegal,” said Cuomo. “My office has and will continue to be on the forefront in protecting consumers against emerging fraud and deception, including ‘astroturfing,’ on the internet.”
Lifestyle Lift sold a cosmetic surgery process marketed as facial firming, or a 'mini' facelift.
Customer reviews were scathing.
"I still look the same after 2 procedures," said one. "But now I have horrific scars down both sides of my face, stabbing pain, incessant itching, sutures coming through the skin, lumps & bumps, and my ears are in the wrong place".
Lifestyle Lift took the matter into its own hands, according to Cuomo's report. "Lifestyle Lift’s president believed that negative internet postings had significantly hurt the company’s reputation and thought the success of the company hinged on controlling messages posted online," said a statement from his office.
"Company employees were directed to create accounts with various internet message boards and pose as satisfied customers of Lifestyle Lift. Employees also attacked legitimate message board posters who criticized Lifestyle Lift and tried to get those posts removed from message boards," it said.
"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 email 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'," it said. Another internal email directed a Lifestyle Lift employee to “Put your wig and skirt on and tell them about the great experience you had.”
The company not only posted fake reviews, it took legal action to try to stop review sites carrying testimonies of scarred and angry customers. It tried to use trade mark law to stop discussion of its procedure on cosmetic surgery community site Realself.com.
Realself.com fought the case and counter-sued with allegations of astroturfing. Lifestyle Lift settled the case before it went to court.
"Their complaint is that we have infringed on their trade mark Lifestyle Lift and we believe that these allegations are completely not true," said Realself.com founder Tom Seery told podcast OUT-LAW Radio before the case was settled. "We are asserting that they are just using trade mark law to silence the critics in our community who have come forward and shared not so positive experiences with the Lifestyle Lift."
"From our evaluation with our lawyers they believe that we have not violated a trade mark here and that we are in our rights to provide a forum where consumers can talk about their experiences with this procedure," he said.
Astroturfing would be against the law in the UK. The Consumer Protection from Unfair Trading Regulations 2008 came into force last May. They contain a general prohibition against trading unfairly, and protect consumers against aggressive or misleading marketing.
The Regulations cover astroturfing because of the general unfair trading prohibition and because they outlaw any practice that fails to make a trader's commercial intent clear.
