NEWS
700+ Brands Put On Notice About Misleading Endorsements and Reviews
The United States Federal Trade Commission (FTC) sent notices to over 700 companies about fake reviews and misleading endorsements. The notice states that receiving the letter does not suggest that the company is engaging in unlawful practices. The communication goes on to note that violating FTC guidelines could result in penalties up to $43,792 per violation.
The FTC notice states that it is not suggesting that the companies have engaged in the deceptive practices.
But the notice itself is ominously titled, “the Federal Trade Commission’s Notice of Penalty Offenses Concerning Deceptive or Unfair Conduct around Endorsements and Testimonials” while also stating the purpose as putting “your company on notice.”
Companies Not Singled Out?
The Federal Trade Commission (FTC) notice claims that the companies are not being singled out.
Yet the FTC seems to have done exactly that by publishing a public list that singles out the companies that were sent the notice.
Many of the companies on the list are some of the most prestigious brands and marketing agencies in the world are on that list.
This is the wording in the sample letter:
“Receipt of the notice puts your company on notice that engaging in conduct described therein could subject the company to civil penalties of up to $43,792 per violation.1
We request that you distribute copies of the notice of penalty offenses and this letter to each of your subsidiaries that sells or markets products or services to consumers in the United
States.FTC staff is not singling out your company or suggesting that you have engaged in deceptive or unfair conduct.
We are widely distributing similar letters and the notice to large companies, top advertisers, leading retailers, top consumer product companies, and major advertising agencies.”
Endorsements, Influencers and Reviews
An area of concern for the FTC is in the rise of social media and the monetization of endorsements and reviews by influencers.
The FTC announcement described the problem:
“The rise of social media has blurred the line between authentic content and advertising, leading to an explosion in deceptive endorsements across the marketplace. Fake online reviews and other deceptive endorsements often tout products throughout the online world.
Fake reviews and other forms of deceptive endorsements cheat consumers and undercut honest businesses… Advertisers will pay a price if they engage in these deceptive practices.”
Some of the activities that the FTC is warning about involves generating endorsements and reviews in a deceptive or misleading manner.
The list of companies that were sent the warning letter consist of big brands such as 1-800-Flowers and some of the biggest marketing agencies in the world, like The Ogilvy Group LLC.
The FTC announcement stated that action was needed because of the rise of social media and the subsequent commerce in endorsements and reviews that the FTC claims are deceptive.
Social media contests and reviews are two of several kinds of deceptive practices called out by the FTC’s Endorsement Guide.
Social Media Contests
The guidance specifically mentions requiring the public to tweet with a specific hashtag as part of contest as a deceptive practice and offers suggestions of a better way to do it that offers better disclosure that something of value (a chance to win a prize) was the reason for the tweet or post.
Paid Reviews
Another example is of a YouTube creator that is contracted by Video Game companies to publish reviews by gamers. The FTC guidelines states that it is important to disclose that an exchange of money had occurred.
The FTC guide is largely in the form of a question and answer FAQ.
Here’s the section about the YouTube creator:
“I’m doing a review of a videogame that hasn’t been released yet. The manufacturer is paying me to try the game and review it. I was planning on disclosing that the manufacturer gave me a “sneak peek” of the game. Isn’t that enough to put people on notice of my relationship to the manufacturer?
No, it’s not. Getting early access doesn’t mean that you got paid. Getting a “sneak peek” of the game doesn’t even mean that you get to keep the game. If you get early access, you can say that, but if you get to keep the game or are paid, you should say so.”
Public List of Companies Receiving a Warning
The FTC published a PDF with the names of all the companies who are receiving warnings.
There is a prominent disclosure at the top of the document that states that the list is not meant to indicate that the companies did anything wrong.
This is the statement:
“The fact that a company is on this list is NOT an indication that it has done anything wrong”
There are many well known names on the list across a variety of industries.
Travel and Hospitality Companies Sent a Notice
- TripAdvisor, Inc
- Hilton Worldwide Holdings, Inc.
- Howard Johnson International Inc
- Holiday Inn
- Hyatt Hotels Corp.
- Starwood Hotels and Resorts Worldwide, Inc.
- Ramada Worldwide Inc.
- The Ritz-Carlton Hotel Company, LLC
- Wyndham Hotels & Resorts, Inc
User Reviews and Recommendation Sites:
- Angi Inc.
- HomeAdvisor Inc.
- Yelp, Inc.
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Popular Brands that Received Notice
- Airbnb, Inc.
- Apple Inc.
- AutoNation Inc.
- Autotrader.com
- eBay Inc.
- Google Fiber Inc.
- Google LLC
- Microsoft Corp.
- YouTube LLC
- Zillow Group, Inc
Be Aware of the United States FTC Guidelines
The action targets the following but is not limited to these kinds of activities:
“…falsely claiming an endorsement by a third party; misrepresenting whether an endorser is an actual, current, or recent user; using an endorsement to make deceptive performance claims; failing to disclose an unexpected material connection with an endorser; and misrepresenting that the experience of endorsers represents consumers’ typical or ordinary experience.”
Businesses that engage in social media and influencer marketing activities, advertising, affiliate marketing and reviews should consider reading the FTC announcement and follow the links to the published guidance on how to properly advertise through these mediums.
Citations
FTC Puts Hundreds of Businesses on Notice about Fake Reviews and Other Misleading Endorsements
PDF: Sample Letter – Unlawful Practices Relating to the Use of Endorsements and Testimonials
THE FTC’S ENDORSEMENT GUIDES: WHAT PEOPLE ARE ASKING
NEWS
OpenAI Introduces Fine-Tuning for GPT-4 and Enabling Customized AI Models
OpenAI has today announced the release of fine-tuning capabilities for its flagship GPT-4 large language model, marking a significant milestone in the AI landscape. This new functionality empowers developers to create tailored versions of GPT-4 to suit specialized use cases, enhancing the model’s utility across various industries.
Fine-tuning has long been a desired feature for developers who require more control over AI behavior, and with this update, OpenAI delivers on that demand. The ability to fine-tune GPT-4 allows businesses and developers to refine the model’s responses to better align with specific requirements, whether for customer service, content generation, technical support, or other unique applications.
Why Fine-Tuning Matters
GPT-4 is a very flexible model that can handle many different tasks. However, some businesses and developers need more specialized AI that matches their specific language, style, and needs. Fine-tuning helps with this by letting them adjust GPT-4 using custom data. For example, companies can train a fine-tuned model to keep a consistent brand tone or focus on industry-specific language.
Fine-tuning also offers improvements in areas like response accuracy and context comprehension. For use cases where nuanced understanding or specialized knowledge is crucial, this can be a game-changer. Models can be taught to better grasp intricate details, improving their effectiveness in sectors such as legal analysis, medical advice, or technical writing.
Key Features of GPT-4 Fine-Tuning
The fine-tuning process leverages OpenAI’s established tools, but now it is optimized for GPT-4’s advanced architecture. Notable features include:
- Enhanced Customization: Developers can precisely influence the model’s behavior and knowledge base.
- Consistency in Output: Fine-tuned models can be made to maintain consistent formatting, tone, or responses, essential for professional applications.
- Higher Efficiency: Compared to training models from scratch, fine-tuning GPT-4 allows organizations to deploy sophisticated AI with reduced time and computational cost.
Additionally, OpenAI has emphasized ease of use with this feature. The fine-tuning workflow is designed to be accessible even to teams with limited AI experience, reducing barriers to customization. For more advanced users, OpenAI provides granular control options to achieve highly specialized outputs.
Implications for the Future
The launch of fine-tuning capabilities for GPT-4 signals a broader shift toward more user-centric AI development. As businesses increasingly adopt AI, the demand for models that can cater to specific business needs, without compromising on performance, will continue to grow. OpenAI’s move positions GPT-4 as a flexible and adaptable tool that can be refined to deliver optimal value in any given scenario.
By offering fine-tuning, OpenAI not only enhances GPT-4’s appeal but also reinforces the model’s role as a leading AI solution across diverse sectors. From startups seeking to automate niche tasks to large enterprises looking to scale intelligent systems, GPT-4’s fine-tuning capability provides a powerful resource for driving innovation.
OpenAI announced that fine-tuning GPT-4o will cost $25 for every million tokens used during training. After the model is set up, it will cost $3.75 per million input tokens and $15 per million output tokens. To help developers get started, OpenAI is offering 1 million free training tokens per day for GPT-4o and 2 million free tokens per day for GPT-4o mini until September 23. This makes it easier for developers to try out the fine-tuning service.
As AI continues to evolve, OpenAI’s focus on customization and adaptability with GPT-4 represents a critical step in making advanced AI accessible, scalable, and more aligned with real-world applications. This new capability is expected to accelerate the adoption of AI across industries, creating a new wave of AI-driven solutions tailored to specific challenges and opportunities.
This Week in Search News: Simple and Easy-to-Read Update
Here’s what happened in the world of Google and search engines this week:
1. Google’s June 2024 Spam Update
Google finished rolling out its June 2024 spam update over a period of seven days. This update aims to reduce spammy content in search results.
2. Changes to Google Search Interface
Google has removed the continuous scroll feature for search results. Instead, it’s back to the old system of pages.
3. New Features and Tests
- Link Cards: Google is testing link cards at the top of AI-generated overviews.
- Health Overviews: There are more AI-generated health overviews showing up in search results.
- Local Panels: Google is testing AI overviews in local information panels.
4. Search Rankings and Quality
- Improving Rankings: Google said it can improve its search ranking system but will only do so on a large scale.
- Measuring Quality: Google’s Elizabeth Tucker shared how they measure search quality.
5. Advice for Content Creators
- Brand Names in Reviews: Google advises not to avoid mentioning brand names in review content.
- Fixing 404 Pages: Google explained when it’s important to fix 404 error pages.
6. New Search Features in Google Chrome
Google Chrome for mobile devices has added several new search features to enhance user experience.
7. New Tests and Features in Google Search
- Credit Card Widget: Google is testing a new widget for credit card information in search results.
- Sliding Search Results: When making a new search query, the results might slide to the right.
8. Bing’s New Feature
Bing is now using AI to write “People Also Ask” questions in search results.
9. Local Search Ranking Factors
Menu items and popular times might be factors that influence local search rankings on Google.
10. Google Ads Updates
- Query Matching and Brand Controls: Google Ads updated its query matching and brand controls, and advertisers are happy with these changes.
- Lead Credits: Google will automate lead credits for Local Service Ads. Google says this is a good change, but some advertisers are worried.
- tROAS Insights Box: Google Ads is testing a new insights box for tROAS (Target Return on Ad Spend) in Performance Max and Standard Shopping campaigns.
- WordPress Tag Code: There is a new conversion code for Google Ads on WordPress sites.
These updates highlight how Google and other search engines are continuously evolving to improve user experience and provide better advertising tools.
Facebook Faces Yet Another Outage: Platform Encounters Technical Issues Again
Uppdated: It seems that today’s issues with Facebook haven’t affected as many users as the last time. A smaller group of people appears to be impacted this time around, which is a relief compared to the larger incident before. Nevertheless, it’s still frustrating for those affected, and hopefully, the issues will be resolved soon by the Facebook team.
Facebook had another problem today (March 20, 2024). According to Downdetector, a website that shows when other websites are not working, many people had trouble using Facebook.
This isn’t the first time Facebook has had issues. Just a little while ago, there was another problem that stopped people from using the site. Today, when people tried to use Facebook, it didn’t work like it should. People couldn’t see their friends’ posts, and sometimes the website wouldn’t even load.
Downdetector, which watches out for problems on websites, showed that lots of people were having trouble with Facebook. People from all over the world said they couldn’t use the site, and they were not happy about it.
When websites like Facebook have problems, it affects a lot of people. It’s not just about not being able to see posts or chat with friends. It can also impact businesses that use Facebook to reach customers.
Since Facebook owns Messenger and Instagram, the problems with Facebook also meant that people had trouble using these apps. It made the situation even more frustrating for many users, who rely on these apps to stay connected with others.
During this recent problem, one thing is obvious: the internet is always changing, and even big websites like Facebook can have problems. While people wait for Facebook to fix the issue, it shows us how easily things online can go wrong. It’s a good reminder that we should have backup plans for staying connected online, just in case something like this happens again.
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