Update on the New York AG and the Fake Net Neutrality Comments – Three Firms Pours $600,000 to Make Astroturfing Go Away

In a recent development, three prominent digital marketing firms, LCX, Lead ID, and Ifficient, have agreed to pay a settlement amount of $615,000 following allegations of submitting over 2.4 million fraudulent public comments.

These comments were aimed at influencing American internet policy and swaying the Federal Communications Commission (FCC) to repeal net neutrality regulations. This unethical practice has raised concerns about the integrity of public discourse. It also reaised the need for stronger measures to combat deception and manipulation in the digital realm.

The Significance of Net Neutrality

Net neutrality, a policy ensuring equal treatment of internet traffic by service providers, gained widespread attention in 2015. The rules were established to prevent ISPs from favoring certain connections over others. This maintains a level playing field for all Internet users. The fear was that without net neutrality, large companies could gain an unfair advantage. This then by paying ISPs to prioritize their content. Then potentially stifling competition and innovation.

The Fabrication of Public Comments

During the public comment period in 2017, Ajit Pai, appointed FCC chairman under the Trump administration, spearheaded the repeal of net neutrality rules. However, subsequent investigations by the Office of the Attorney General revealed that a staggering 18 million out of 22 million comments submitted were fraudulent.

Both pro and anti-net neutrality comments were found to be fake. Serving as a smokescreen to create an illusion of grassroots opposition or support.

Uncovering the Offenders of Net Neutrality

LCX, Lead ID, and Ifficient employed different strategies to generate fake comments. They either reused consumer data from previous marketing campaigns or acquired data through questionable means, including a large data breach file discovered online. These firms exploited unsuspecting individuals’ identities to further their private agendas, a reprehensible act that undermines the authenticity of public opinion.

Consequences and Accountability

New York Attorney General Letitia James emphasizes the need for accountability, asserting that companies must not manipulate public comments to promote their own interests. The recent settlement serves as a reminder that such deceptive practices will not go unpunished.

The accompanying report contains important recommendations. These include more rigorous vetting of lead generation providers by advocacy groups. It also contains accountability of the latter for comments posted and the enactment of stricter laws to discourage manipulation and deception in public discourse.

The Problems with Astroturfing

Astroturfing poses several problems in the realm of public discourse and consumer decision-making. It involves the manipulation and deception of consumers and investors. Who are unable to make informed choices when the true source of information is hidden.

The practice often involves front groups and public relations firms, shielding the true intentions and affiliations of those behind the campaigns. With no federal laws or regulations specifically targeting astroturfing, the public is left with limited recourse to combat this deceptive practice.

The Need for Regulatory Reform

To address the issues surrounding astroturfing and protect the interests of consumers and investors, regulatory reform is imperative. One potential avenue for reform is revising the Uniform Deceptive Trade Practice Act to explicitly classify astroturfing as a deceptive practice. By doing so, legal consequences can be imposed on those engaging in such manipulative tactics, providing a stronger deterrent.

Enhancing Shareholder Disclosures

In addition to legal reforms, mandatory disclosures to shareholders should be expanded to include information about socially responsible investing. Shareholders have the right to know if the companies they invest in are involved in deceptive practices like astroturfing. By ensuring transparency and accountability in reporting, shareholders can make more informed decisions aligned with their values.

Collaborative Efforts

Combating astroturfing requires collaborative efforts between regulatory bodies, law enforcement officials, and advocacy groups. Government agencies should hold advocacy groups and their vendors accountable for the comments they submit. Ensuring that false or misleading information does not influence policy decisions.

Furthermore, advocacy groups should actively vet their lead generation vendors. This to verify the authenticity and integrity of the comments they collect and submit.