AUSTIN – The Federal Trade Commission and state attorneys general announced lawsuits against Google and iHeartMedia for airing nearly 29,000 deceptive endorsements by radio personalities promoting their use of Google’s Pixel 4 phone in 2019 and 2020. The proposed FTC orders and the state judgments settling the allegations bar Google and iHeartMedia from similar misrepresentations, and also require the companies to pay $9.4 million in penalties, states a Nov. 28 FTC press release.
“Google and iHeartMedia paid influencers to promote products they never used, showing a blatant disrespect for truth-in-advertising rules,” said Bureau of Consumer Protection Director Samuel Levine. “The FTC will not stop working with our partners in the states to crack down on deceptive ads and ensure firms that break the rules pay a price.”
Earlier this year, Attorney General Ken Paxton filed suit against Google in state court for allegedly engaging in deceptive trade practices.
The lawsuit was over Google’s employment of iHeartMedia to record and broadcast advertisements in Texas markets to promote the Pixel 4 smartphone. Google provided the script for the ads which included personal endorsements for DJs to read, describing their personal use and enjoyment of the smartphone.
At the time, however, the Pixel 4 had not yet been released, none of the DJs had actually used it, and Google refused to provide samples to iHeartMedia.
Court records show the case was removed to federal court.
Attorneys general for Arizona, California, Georgia, Illinois, Massachusetts, New York and Texas supported the FTC in securing monetary relief, the press release states.