Public relations agency Reverb communications, hired by iPhone game developers to promote their App Store offerings, has reached a settlement with the FTC over accusations that company employees posted positive reviews for the games the company was hired to promote. The FTC levied charges against Reverb for violating rules that require the sellers of products and those posting information about the products online to disclose any connection they might have.

The FTC first began looking into practices of “stealth marketing,” which seeks to build product buzz via blogs, social media, and word of mouth by quietly paying “ordinary” people to promote the product, in late 2006. Eventually the FTC imposed new rules in 2009 that require anyone writing about products and services online to disclose any financial connection with the sellers, including “payment in kind” of free products or other gifts. These rules also apply to public relations and advertising agencies hired by the seller.

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PR firm settles with FTC over alleged App Store astroturfing