Fake Amazon reviews draw fraud charges in groundbreaking FTC case

The US Federal Trade Commission has successfully brought the first ever case against using fraudulent, paid Amazon reviews to falsely advertise an online product, the agency announced Tuesday evening. The company in question, named Cure Encapsulations, Inc. and owned by Naftula Jacobowitz, paid a third-party website to write five-star Amazon reviews for a weight-loss supplement called garcinia cambogia. The plant, native to Indonesia, is widely mischaracterized as contributing to weight loss, but is in fact known to cause acute liver failure.

Cure Encapsulations paid a website called amazonverifiedreviews.com to keep the product’s Amazon rating above 4.3 out of 5 stars, with reviews stating that the supplement worked as a “powerful...

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