Google and iHeartMedia face lawsuits from seven US states and the US Federal Trade Commission over claims of false ads.
The FTC on Monday announced that the two companies aired almost 29,000 deceptive ads in 2019 and 2020.
According to a report, the ads were played across 10 media markets, including San Francisco and Los Angeles.
An official from the agency commented that Google and iHeartMedia disrespected the truth-in-advertising rules.
This remark follows the claims that influencers were paid to promote a product they did not use.
In addition, the official noted that the FTC would continue to crack down on firms that promote deceptive ads.
To settle the case, Google and iHeartMedia paid a penalty amounting to $ 9.40 million.
In the settlement, the FTC was joined by the states of Massachusetts, New York, Arizona, Georgia, California, Illinois, and Texas.
Since the case was filed in California, the state would receive $3.00 million of the $9.40 million settlement money.
Massachusetts Attorney General Maura Healey stated that the settlement would ensure the companies’ compliance with state and federal law.
Meanwhile, a Google spokesperson said in an email that they would comply with the relevant regulations and industry standards.
Lawsuit Against Google’s Play Store
A federal judge in California allowed the lawsuit against Google to advance as a consumer class action.
The lawsuits accused the tech giant of violating the US anti-competition laws with how it runs its app store.
According to US District Judge James Donato, the plaintiffs had enough legal elements of commonality to form a class action for business malpractice.
Reportedly, the 21 million class action members came from 23 states.
Said states are Michigan, Georgia, Ohio, American Samoa, the Northern Mariana Islands, Guam, US Virgin Islands, and Puerto Rico.
However, the tech giant denied the claims and defended its business practices in its Play store.
Additionally, a Google spokesperson added that the company would determine its option after evaluating the ruling.
The first trial is set to begin in June 2023.
