WASHINGTON, D.C. — A public relations firm has reached a settlement with the Federal Trade Commission (FTC) over charges it did not disclose that it paid Olympic athletes featured in promotions of a new mosquito repellent during the 2016 Rio De Janeiro Olympics Games and Zika virus outbreak in its advertising and marketing.
According to the FTC, Creaxion Corporation paid Olympic medal winners to endorse its product in the media campaign for "Fit Organic" mosquito repellent that included magazine ads, social media posts and advertorials. The firm led consumers to believe the advertising was made up of "independent consumer opinions" and "journalistic content" and did not disclose that the athletes were paid endorsers, the FTC said.
The FTC also alleged Creaxion paid employees and friends to review Fit Organic mosquito repellant on walmart.com and paid for Inside Gymnastics magazine ads designed to look like articles and features.
As part of the settlement Creaxion and Inside Publications are banned from further misrepresentations about product endorsements and reviews and cannot use endorsements of a product or service without disclosers, according to the FTC. The companies must also inform endorsers of their obligations and will also monitor endorsements and fire those who do not follow compliance.