Bountiful Company (Bountiful), a dietary supplement company, will pay $600,000 to settle a lawsuit with the Federal Trade Commission (FTC) over allegations of inflated ratings on Amazon.com.
In addition to payments, Bountiful is prohibited from “making false representations about or through its product or service ratings, reviews, badges, or endorsements,” the federal agency said on February 16. stated in the complaint (pdf).
The company allegedly manipulated Amazon reviews and ratings through a feature called “variation listings.”
Variation listings on Amazon allow vendors to list products with variations such as size and color under one listing. The total number of ratings and reviews for all products is displayed under one product page.
If your listing earns a “No.1 Best Seller” or “Amazon’s Choice” badge, those badges apply to all variations of that listing.
Variation listings are widely seen as the primary way to increase listing ratings and reviews on Amazon.
A Bountiful employee reportedly told the FTC that the company is adding new products to Amazon’s variation list to boost ratings and reviews. You can also borrow the “Amazon’s Choice” and “Best Seller” badges.
Products involved in the settlement include Bountiful’s Nature’s Bounty and Sundown branded nutritional supplements.
Both the Nature’s Bounty and Sundown brands will be acquired by Nestlé Health Science in 2021.
“The Bountiful Company has settled this matter with the FTC to avoid a long and costly legal challenge,” Nestlé Health Sciences said in response to a request for comment from The Epoch Times.
The company continued: Bountiful has already complied with the terms of the order and will continue to do so. ”
An Amazon spokesperson told The Epoch Times that the company will continue to help the FTC and other agencies stop fraud.
“Amazon stores have no room for fraud, and we will continue to support enforcement agencies to hold bad actors accountable,” the spokesperson said.
According to the U.S. Food and Drug Administration (FDA), federal agencies do not have the authority to approve the safety and efficacy of dietary supplements before they are marketed.
Companies can legally market dietary supplements, often without even notifying the FDA.
However, federal agencies regulate finished dietary supplement products and nutritional ingredients under the Dietary Supplement Health and Education Act of 1994.
