Earlier this week, the New York Attorney General announced that it has settled charges against   Devumi LLC and related companies for allegedly selling fake followers, “likes,” views and endorsements to users of social media platforms that came from computer-operated bot accounts, or by one person pretending to be numerous other people (“sock-puppet accounts”). 

The OAG alleges that these accounts, found on social media platforms including Twitter, YouTube, LinkedIn, SoundCloud and Pinterest, falsely pretended to express the genuine positive opinions of real people, when they actually reflected false, paid-for activity aimed at deceiving online audiences and the public.  A portion of the activity Devumi sold purportedly came from bogus accounts that copied real people’s social media pictures and profiles without the knowledge or consent of the person whose identity had been copied. 

Devumi is also alleged to have sold endorsements from social media influencers to its own customers - that mistakenly believed they were paying for authentic endorsements - without disclosing that the influencers had been paid for their recommendations.  The Federal Trade Commission Endorsement Guides clearly state that if the is a connection between an endorser and the marketer that consumers would not expect and it would affect how consumers evaluate the endorsement, that connection should be clearly and conspicuously disclosed.

“Bots and other fake accounts have been running rampant on social media platforms, often stealing real people’s identities to carry out fraud,” said Attorney General Letitia James.  “As people and companies like Devumi continue to make a quick buck by lying to honest Americans, my office will continue to find and stop anyone who sells online deception.  With this settlement, we are sending a clear message that anyone profiting off of deception and impersonation is breaking the law and will be held accountable.”   

The settlement requires the settling parties to cover the costs of the investigation, prohibits a public denial of the charges and prohibits Devumi from engaging in similar misconduct. 

Takeaway:  This settlement is the nation’s first finding by a law enforcement agency that selling fake followers and “likes” is deceptive and that fake activity utilizing stolen identities constitutes illegal impersonation.