Direct marketers have long been the focus of the Iowa Attorney General’s office. This scrutiny has now expanded to focus on companies that provide goods or service to marketers, particularly involving psychic or sweepstakes-related promotions. While many believe this scrutiny to be misplaced, suppliers nevertheless need to be vigilant with respect to their business practices with respect to their clients’ marketing practices.
Case marks the first enforcement action against a crowdfunded project that has not delivered the goods promised.
The Washington AG alleged ArrowOutlet.com rigged its auctions for electronics and other goods. Bidders thought they were competing with other human beings. But in reality they were often battling or placing bets against "bots" - people that did not exist.