Devumi was an American company founded in 2010 [1] which sold fake influence on social media. In October 2019, Devumi settled with the Federal Trade Commission, in the agency's first-ever complaint regarding the sale of fake followers, views, and likes on social media, for $2.5 million.
While Devumi operated, it sold more than 200 million fake followers. Even at its peak the company was tiny with their main office located above a restaurant in Florida. The firm primarily sold Twitter bots sourced from operations like Peakerr, SkillPatron, JAP, Cheap Panel and YTbot at a markup to celebrity and commercial clients. [2] The company also operated on YouTube, SoundCloud, and LinkedIn. [3]
In 2018, The New York Times published an expose about Devumi and its role in social media fraud, including supplying fake video views and social media account followers to customers. [4] The revelations in the story spurred action from regulators. [5] Devumi was forced to shut down soon after the article was published. [6]
In 2019, owner and CEO German Calas, Jr settled with the Federal Trade Commission (FTC) for $2.5 million. [7] [8] According to the FTC this was the "first-ever complaint challenging the sale of fake indicators of social media influence." [9]
Astroturfing is the practice of hiding the sponsors of a message or organization to make it appear as though it originates from, and is supported by, grassroots participants. It is a practice intended to give the statements or organizations credibility by withholding information about the source's financial backers.
In promotion and advertising, a testimonial or show consists of a person's written or spoken statement extolling the virtue of a product. The term "testimonial" most commonly applies to the sales-pitches attributed to ordinary citizens, whereas the word "endorsement" usually applies to pitches by celebrities. Testimonials can be part of communal marketing.
Herbalife Nutrition Ltd., also called Herbalife International, Inc. or simply Herbalife, is an American multinational multi-level marketing (MLM) corporation that develops and sells dietary supplements. The company has been alleged to have fraudulently operated a pyramid scheme. Some products sold by Herbalife have caused acute hepatitis. The business is incorporated in the Cayman Islands, a tax haven, with its corporate headquarters located in Los Angeles, California.
Equifax Inc. is an American multinational consumer credit reporting agency headquartered in Atlanta, Georgia and is one of the three largest consumer credit reporting agencies, along with Experian and TransUnion. Equifax collects and aggregates information on over 800 million individual consumers and more than 88 million businesses worldwide. In addition to credit and demographic data and services to business, Equifax sells credit monitoring and fraud prevention services directly to consumers.
Adult FriendFinder(AFF) is an internet-based, adult-oriented social networking service, online dating service and swinger personals community website, founded by Andrew Conru in 1996.
Nu Skin Enterprises, Inc. is an American multilevel marketing company that develops and sells personal care products and dietary and nutritional supplements. Under the Nu Skin and Pharmanex brands, the company sells its products in 54 markets through a network of approximately 1.2 million independent distributors.
Vinpocetine is a synthetic derivative of the vinca alkaloid vincamine, differing by the removal of a hydroxyl group and by being the ethyl rather than the methyl ester of the underlying carboxylic acid. Vincamine is extracted from either the seeds of Voacanga africana or the leaves of Vinca minor.
Christopher Soghoian is a privacy researcher and activist. He is currently working for Senator Ron Wyden as the senator’s Senior Advisor for Privacy & Cybersecurity. From 2012 to 2016, he was the principal technologist at the American Civil Liberties Union.
Influencer marketing is a form of social media marketing involving endorsements and product placement from influencers, people and organizations who have a purported expert level of knowledge or social influence in their field. Influencers are someone with the power to affect the buying habits or quantifiable actions of others by uploading some form of original—often sponsored—content to social media platforms like Instagram, YouTube, Snapchat, TikTok or other online channels. Influencer marketing is when a brand enrolls influencers who have an established credibility and audience on social media platforms to discuss or mention the brand in a social media post. Influencer content may be framed as testimonial advertising.
LifeLock Inc. was an American software company active from 2005 to 2017. The company was best known for its eponymous LifeLock identity theft prevention software, now sold by Gen Digital after the latter acquired LifeLock in 2017. LifeLock's system monitors for identity theft, the use of personal information, and credit score changes.
Andrew Bachman is an American entrepreneur and investor. He is the founder of several companies, including Game Plan Holdings; after being charged with mobile cramming by the Federal Trade Commission, he resigned as president, chief executive officer, chief financial officer and chairman of Game Plan Holdings on February 11, 2014. He later agreed to a settlement with the FTC that includes a monetary judgment of more than $97 million. The judgment was partially suspended based on Bachman’s inability to pay the full amount, after he turned over nearly all of his assets.
VemmaNutrition Company was a privately held multi-level marketing company that sold dietary supplements. The company was shut down in 2015 by the FTC for engaging in deceptive practices and being a pyramid scheme.
TINA.org (TruthinAdvertising.org) is an independent, non-profit, advertising watchdog organization founded in the United States of America. TINA.org was founded in 2012 and received its initial funding from Karen Pritzker and Michael Vlock through their Seedlings Foundation, which supports programs that nourish the physical and mental health of children and families, and fosters an educated and engaged citizenship. TINA.org is headed by Bonnie Patten, who has served as its Executive Director since its founding.
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