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Legal Dispute: Google Faces Lawsuit for Celebrity-Endorsed Pixel 4 Ads
Google and iHeartMedia are under scrutiny from the Federal Trade Commission for disseminating misleading advertisements about the Google Pixel 4 phone.
Google is accused of compensating celebrities to promote the Google Pixel 4 phone, despite their lack of actual usage of the product. The company enlisted iHeartMedia - a US-based media company, to broadcast nearly 29,000 videos featuring renowned figures endorsing and advocating for the use of the Pixel 4 in 2019 and 2020.
The Federal Trade Commission (FTC) alongside seven other states have accused Google and iHeartMedia of deceptive advertising due to the endorsers' lack of direct product usage.
The scenarios utilized to advertise Google's flagship phone encompassed statements such as: 'This is my favorite phone and camera, especially in low light conditions, thanks to the Night mode', or 'I've captured photos as if in a Studio', and 'It's fantastic when all my tasks are completed thanks to the assistance of the Google Assistant, by activating voice to manage multiple tasks simultaneously.'
The influencers contracted had never utilized this phone, prior to or after filming, until the advertisement was aired.
Google is alleged to have disbursed over $2.6 million to iHeartRadio and $2 million to '11 small online networks' for Pixel 4 advertisements. The lawsuit contends that the influencers were hired to film but had never actually used the phone in reality.
Maura Healey, Attorney General of Massachusetts, stated: 'Typically, consumers tend to invest in products that have been directly experienced. They anticipate product advertisements on the radio to be honest and transparent, devoid of misinformation and misconceptions about the product.'
Presently, an injunction has been proposed by the FTC, and the states will adjudicate on allegations prohibiting Google and iHeartMedia from engaging in similar deceptive advertising in the future. The penalty for both companies is noted at $9.4 million.
