FTC, ADT Reach Consent Order Over Paid 'Expert' Radio/TV Interviews
March 10, 2014 at 4:04 AM (PT)
ADT LLC has settled with the FTC over arranging interviews on radio and TV shows that were disguised paid endorsements by the "experts."
The agency announced THURSDAY (3/6) that it had voted 4-0 to charge the home security firm with misrepresentation, and that ADT had agreed to a consent order that prohibits the behavior and adds disclosure requirements. The firm allegedly paid three spokespersons over $300,000 to promote its ADT Pulse system in interviews.
FTC Bureau of Consumer Protection Dir. JESSICA RICH said, “It’s hard for consumers to make good buying decisions when they think they’re getting independent expert advice as part of an impartial news segment and have no way of knowing they are actually watching a sales pitch. When a paid endorser appears in a news or talk show segment with the host of that program, the relationship with the advertiser must be clearly disclosed.”