Google, iHeartMedia settle charges of deceptive Pixel 4 ads with FTC, U.S. states (updated)

iHeartMedia

28/11/2022 20:07

(Adds details from settlement)
    By Kanishka Singh
       WASHINGTON, Nov 28 (Reuters) - The U.S. Federal Trade
Commission and seven U.S. states reached a settlement with
Alphabet Inc's  GOOGL.O  Google and iHeartMedia Inc  IHRT.O 
over allegations of deceptive ads promoting Google's Pixel 4
smartphone, the FTC said.
    the FTC said in a statement on Monday that the companies
aired nearly 29,000 deceptive endorsements by radio
personalities promoting their use of and experience with
Google’s Pixel 4 phone in 2019 and 2020. 
    The allegations were settled by the companies, who agreed to
pay $9.4 million in penalties, the FTC said.
        "Google and iHeartMedia paid influencers to promote
products they never used, showing a blatant disrespect for
truth-in-advertising rules," FTC official Samuel Levine said.
  
        In 2019, Google hired iHeartMedia and 11 other radio
networks in 10 major markets to have on-air personalities record
and broadcast endorsements of the Pixel 4 phone, according to
the FTC.
  
        The seven states to join the FTC were New York, Arizona,
California, Georgia, Illinois, Massachusetts and Texas.
  
        The ads ran in English and Spanish and allegedly
violated consumer protection laws, the FTC and the seven states
said.
  
        Google and iHeartMedia did not immediately respond to a
request for comment
  
 (Reporting by Kanishka Singh in Washingtond; editing by
Jonathan Oatis and Cynthia Osterman)
 ((Kanishka.Singh@thomsonreuters.com; +12024508248;))