FTC, AGs Settle With Google, iHeart Over 'Deceptive' Radio Ads

Google and iHeartMedia violated the FTC Act when they aired some 29,000 “deceptive endorsements by radio personalities promoting their use of and experience with Google’s Pixel 4 phone” in 2019 and 2020, the FTC and seven state attorneys general said Monday in a settlement for $9.4 million.

According to the FTC, Google “hired iHeartMedia and 11 other radio networks in ten major markets to have on-air personalities record and broadcast endorsements of the Pixel 4 phone.” Google offered scripts for the reviews, which included lines about how great the phone is and the reviewers’ favorite features. The “on-air personalities were not provided with Pixel 4s before recording and airing the majority of the ads and therefore did not own or regularly use the phones,” the FTC said.

The commission vote to issue the administrative complaint was 5-0. The Google settlement was with California, Arizona, Georgia, Illinois, Massachusetts and New York. The same states and Texas joined the settlement against iHeartMedia. Proposed orders against the companies bar Google and iHeartMedia from misrepresenting an endorser’s experience with products. They also require the companies to share the order with certain people, file compliance reports with the FTC and “keep records to allow the FTC to ensure compliance.”

“Google and iHeartMedia paid influencers to promote products they never used, showing a blatant disrespect for truth-in-advertising rules,” said FTC Consumer Protection Bureau Director Samuel Levine. “The FTC will not stop working with our partners in the states to crack down on deceptive ads and ensure firms that break the rules pay a price.”

“We are pleased to resolve this issue,” Google said in a statement. “We take compliance with advertising laws seriously and have processes in place designed to help ensure we follow relevant regulations and industry standards.” IHeartMedia didn’t comment.

Google’s conduct violated California’s false advertising and unfair competition laws, California DOJ said. “Google tried to take shortcuts in advertising its products, and now it’s paying the price,” said Attorney General Rob Bonta (D). “Asking DJs to share personal experiences about a product they had not used is misleading -- and a violation of state consumer protection laws.”

“Google and iHeartMedia knowingly misled the public through inaccurate ads to turn a profit,” said New York Attorney General Letitia James (D). New York will receive $1.58 million, including $1.52 million from Google, the AG office said. “My office will not tolerate misleading claims, and outright lies from advertisers, and we will hold them accountable.”

“Consumers expect radio advertisements to be truthful and transparent about products, not misleading with fake endorsements,” said AG Maura Healey (D), the state’s governor-elect. “Today’s settlement holds Google and iHeart accountable for this deceptive ad campaign and ensures compliance with state and federal law moving forward.”