Deutsch LA, Inc.
The FTC alleged that ad agency Deutsch LA knew or should have known its PlayStation Vita advertising contained misleading capability claims, and urged its own employees to build excitement on Twitter without disclosing their connection to the agency or its client.
Resolved. Refunded, settled, ceased operating, or the claim did not hold up. Kept for the record.
Identity
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- Registrations
- In the Matter of Deutsch LA, Inc. (FTC File No. 122-3252, final order 2015)
- Jurisdictions
- United States (federal)
The agency, not only the client
Deutsch LA was Sony’s advertising agency for the 2012 launch of the PlayStation Vita handheld games console. The FTC alleged that Sony deceived consumers with false claims about several “game changing” technological features of the console in late 2011 and early 2012, and that Deutsch LA knew or should have known that the advertisements it produced contained misleading claims about what the console could do.
That is the part worth noting. The agency was held to account for the content of the advertising it made, not merely the advertiser.
The Twitter allegation
The FTC separately alleged that Deutsch LA urged its own employees to create awareness and excitement about the console on Twitter without instructing them to disclose their connection to the agency or to its client.
The order
Deutsch LA is barred from making the same misrepresentations charged against Sony, and from misrepresenting that an endorser of any game console or video game product is an independent user or ordinary consumer. Where a material connection exists between an endorser and the agency or anyone involved in making or marketing the product, it must be disclosed.
Under the separate order against Sony, buyers who purchased a PS Vita before June 1, 2012 were offered either a $25 cash or credit refund or a $50 merchandise voucher.
What is not established
A consent order is for settlement purposes only and is not an admission that the law was violated.
Sources
Every claim above rests on one of these. Open them and check.
- Enforcement action March 31, 2015
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First recorded March 31, 2015 · Last updated March 31, 2015