Showing posts with label News. Show all posts
Showing posts with label News. Show all posts

Don’t Just Blame Affiliates for Belly Fat Ads

"ADOTAS – A weary Internet public sighs in relief. Finally the Federal Trade Commission is coming down on the people responsible for the animated belly fat ads — no more crudely drawn cellulite jiggling above tight jeans! No more images of French newscaster Melissa Theuriau (who reportedly didn’t know her image was being used) promising hard-hitting investigations into Acai berry products!"
When I first started reporting on the digital ad space, over and over I heard CPA network heads claiming that the Wild West days of the Internet were over. Bulls—, I thought then, and I’m of the same mindset now. CPA networks love propagating the idea that some bad apples are ruining a legitimate business for the rest, but the fake blogs and articles (hence “flogs and farticles”) issue is systemic — publishers, networks, affiliates and advertisers are all guilty parties.
FTC reps — likely in response to a widely shared AdAge article suggesting the agency’s crackdown on flogs and farticles wasn’t doing much — sat down with Paul Farhi of The Washington Post to explain the 10 operations (PDF) it swept back in April, focusing on the belly ad scam in particular and why it spread to even the most premium content depots (MSNBC.com? CNN.com? My lord!) of the worldwide web via affiliate marketers (which WaPo almost describes as alien-like creatures).

Basically, affiliates used ads with the animated shrinking belly and pretty (fake) investigative reporters to lure browsers to websites disguised as legitimate news depots — i.e., they had no big print that saying “This is an advertisement.” These were/are filled with fake statements from real news depots and unsubstantiated benefits, as well as links to sketchy stores where you can buy miracle diet products.
It’s nothing new – a source recently suggested to me that the farticle has been ingrained in the affiliate model for a long, long time.
Don’t Just Blame Affiliates for Belly Fat Ads:

Money, fraud and hukou | Economy | chinadaily.com.cn

Beijing's efforts to strictly curb population growth have boosted the black market trade in hukou, permanent residency permits.
Though illegal, there is a thriving market. The municipality's reduction of the number of permits granted to non-locals - one-third less than the roughly 10,000 issued to college graduates last year - has led to a price surge.
"Advertisements and information about hukou vendors can be found on almost every search engine and on university Internet bulletin boards in Beijing.
Most claim that they can help new graduates get a Beijing hukou for 150,000 to 300,000 yuan ($23,200 to $46,400). Some posts even offer deals to people of any age and educational background.
'Hukou, especially Beijing hukou, are scarce and the government has a very strict access system,' said Yuan Xin, a professor at Tianjin-based Nankai University's Population and Development Institute. 'People who consider taking a chance and buying one need to be alert to fraud.'
'There are only three quotas left. People who need it have to hurry up. Each for 180,000 yuan. People who want a discount please do not call,' reads a notice on search engine Baidu's posting forum.
Pretending to buy hukou for a younger brother, a China Daily reporter telephoned a hukou vendor who promised to help her obtain hukou in Hujialou, Chaoyang district, Beijing. The man, who gave only a surname, Zhang, asked for 180,000 yuan."
Via Money, fraud and hukou | Economy | chinadaily.com.cn:

California man charged with tax evasion after creating internet start-up scam - Tax News - TaxLawHome.com

"Tax evaders are finding new and intricate ways to cheat the system as is evidenced in the recent sentencing of a California man on charges of evading federal income taxes.

Chase Norwood, who also went by Thomas Gray, has been convicted after concocting a fake internet start-up company and soliciting investors for funding. He could face up to 60 months in federal prison, according to the Beverly Hills Courier.

Norwood was charged with 15 counts of federal mail fraud, tax evasion and wire fraud after tricking investors into believing that his company, Cal Broadband, was a renowned high-speed internet provider that was worth investing into, according to the news source.

Norwood spent the investment funds on condo payments for his mother, keeping part-time residencies in upscale hotels and concocting more schemes to trick investors.

Norwood originally pleaded not guilty to the charges when he was indicted in 2008. It was also revealed that he evaded federal income taxes for 2000 and 2001."

California man charged with tax evasion after creating internet start-up scam - Tax News - TaxLawHome.com: