Publishing.com LLC

What was alleged

The FTC charged Publishing.com LLC and its two principals, the Mikkelsens, with misleading buyers about how much money they were likely to earn using the company’s products.

The company and its principals agreed to pay $1.5 million and to substantiate earnings claims in future.

What the order covers

The proposed order prohibits Publishing.com and the Mikkelsens from:

• making earnings claims unless the claims are not misleading and they have a reasonable basis to support them
• making the specific misrepresentations detailed in the complaint, or misrepresenting material facts in the sale of any product or service
• failing to disclose the terms of any cancellation or refund policy, or failing to promptly honour a cancellation or refund request in line with company policy
• misrepresenting endorsements and reviews

They must also disclose any unexpected material connection with endorsers or reviewers, and any payment or other incentive given for posting a review.

The Commission vote to accept the consent agreement was 2-0.

The pattern this completes

Look at what the FTC now routinely bolts on to an earnings-claim order: substantiation, refund handling, and endorsement disclosure. The same three appear here, in Publishing.com’s order, and in accessiBe’s.

That is a regulator saying these three failures travel together. In practice they do: an operation that overstates earnings usually also makes refunds difficult and buys the reviews that make the earnings claim look credible.

For a buyer the useful version is a sequence of three questions before paying. What is the basis for that earnings figure. What exactly is the refund policy and who has actually collected on it. Who paid for the testimonials.

What is not established

A consent order resolves allegations without any admission or finding of wrongdoing. At the time of writing the order was proposed and subject to a public comment period before the Commission decides whether to finalise it.

We have not yet contacted Publishing.com or the named principals for comment. When we do, the attempt and any response will appear on this entry.