The Federal Trade Commission (FTC) has settled a multi-million-dollar lawsuit with Google and iHeartMedia following a controversy over the endorsement of a Google-made smartphone.
According to RadioInk, the promotion saw Google and iHeartMedia pay influencers to promote the Google Pixel 4 phone and offer testimony on their purported use of the device.
The lawsuit involved seven states and the FTC. A settlement was announced on Monday. Google and iHeartMedia will have to pay more than nine million dollars in fees. The settlement does not prohibit the two companies from partnering again for promotions.
The complaint alleged Google provided a script to iHeartMedia to have their talent read, in which they touted the Google Pixel 4’s unique camera and photography software. The suit also said that the influencers never used the product.
On one occasion, according to the report, an employee asked Google if it would be possible to give radio talent devices, a Google staffer reportedly wrote back that “this is not feasible…as the product is not on shelves yet,”
“It is common sense that people put more stock in first-hand experiences,” Maura Healey, the attorney general for Massachusetts, said on Monday.
According to The Verge, Google said the company was “pleased” to settle the lawsuit
