Not All Ratings Are Created Equal: Comparison Shopping Website Allegedly Falsified Ratings for a Fee

  • The FTC settled with comparison shopping website LendEDU, Shop Tutors, Inc., and related individuals (collectively, “LendEDU”) to resolve allegations that LendEDU promoted fake rankings for a fee and posted fake reviews in violation of the FTC Act.
  • According to the complaint, the LendEDU website—advertised as providing information about financial products like loans and insurance—allegedly created the false impression that its site provided impartial rankings and objective product information, but in reality offered higher rankings and better product placement for a fee.
  • Under the terms of the final decision and order, LendEDU must pay $350,000 to the FTC for consumer redress and is enjoined from misrepresenting the objectivity of the rankings and the effect of compensation on the website’s content, among other things.