Google, iHeartMedia to pay millions amid settlement with FTC over Pixel 4 ads
The companies must pay $9.4 million
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Google and iHeartMedia will pay millions as they settle with the Federal Trade Commission (FTC) and a handful of states in connection to advertisements for the tech giant’s Pixel 4 smartphone, according to a Monday press release from the agency.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GOOGL | ALPHABET INC. | 167.63 | -8.35 | -4.74% |
| IHRT | CC MEDIA HOLDINGS INC | 2.45 | +0.13 | +5.60% |
The FTC accused Google and iHeartMedia of violating the FTC Act, alleging that they aired endorsement ads in 2019 and 2020 that made it seem like certain iHeartRadio personalities "owned or regularly used" Pixel 4 phones and took nighttime photos with them when that wasn’t actually the case for "numerous" of those DJs. A total of nearly 29,000 of the "deceptive" Pixel 4 endorsements were broadcast by the two companies in multiple major markets during that time period, the FTC claimed.
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In the release, the FTC said its consent agreements with Google and iHeartMedia require the companies to submit compliance reports and maintain records for compliance-tracking purposes. They also include provisions respectively forbidding the companies from "misrepresenting that an endorser has owned or used, or about their experience with, any consumer product or service," per the agency’s release.
The FTC accused Google and iHeartMedia of violating the FTC Act. (Rolf Vennenbernd/picture alliance via Getty Images / Getty Images)
The FTC accused Google and iHeartMedia of violating the FTC Act.
Google and iHeartMedia must pay $9.4 million as part of the state judgments, including $1.58 million to New York, more than $1 million to Massachusetts and more than $1.5 million to Illinois, according to releases from the states.
In total, six states reached settlements with Google and iHeartMedia. Texas "also joined the group in the settlement" with the mass media company, the Illinois attorney general’s office said.
A huge increase in the number of mergers coming before the U.S. Federal Trade Commission for antitrust reviews is limiting its ability to investigate deals in a timely fashion, the FTC said. (Reuters/Andrew Kelly/File Photo / Reuters Photos)
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"We are pleased to resolve this issue," Google spokesperson Jose Castaneda told FOX Business. "We take compliance with advertising laws seriously and have processes in place designed to help ensure we follow relevant regulations and industry standards."
A spokesperson for iHeartMedia declined to comment.
Google launched the Pixel 4 roughly three years ago. It has since rolled out other editions of its smartphone, including the Pixel 7 lineup this year.