The case could be a legal precedent to deal with similar cases in the future.
The Federal Trade Commission recently fined a US-based company Devumi $2.5 million for selling “fake indicators of social media influence.” This piece says that lawyers could use case as legal precedent for other similar cases.
Devumi, which has since shut down, had also agreed to pay $50000 to New York Attorney General’s office. The Attorney General’s office said it was also looking into other companies which were selling fake social media engagement metrics.
The author contends that the case could help discourage other brands from selling fake likes and followers. The fine will be suspended once Devumi has paid $250,000 to the FTC.
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