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ConsumerAffairs

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ConsumerAffairs
Company typePrivate
IndustryConsumer protection
Industry self regulation
HeadquartersLake Tahoe, Nevada
Key people
Zac Carman (CEO)[1]
WebsiteConsumerAffairs

‘’’ConsumerAffairs’’’ is a Dot-com company founded in 1998 by Jim Hood. It is headquartered in Stateline, Nevada with an office in Tulsa, Oklahoma. It is not a government organization or a non-profit organization.[2] The company provides consumer news and a SaaS that allows brands to connect with consumers called ConsumerAffairs for Brands.[3] The current CEO is Zac Carman.

History

The company was founded in 1998 by Jim Hood, an Associate Press executive, editor and reporter, as an easier way of collecting consumer opinions.[4]

In 2010, the company was purchased by Zac Carman as an “opportunity to turn customer complaints into an opportunity for brands."[5] They moved to Tulsa, OK in 2010.[6]

In 2015, the company had a $1.1 million renovation of the Petroleum Building in the Oil Capital Historic District. The renovation was to increase their employee base from 120 to 220.[6]

Criticism

In October 21, 2014, Truth in Advertising published “Who is ConsumerAffairs.com Really Advocating For?” In the article, Unbeatablesale.com complained to the Electronic Retailing Self-Regulation Program, a division of the Better Business Bureaus and National Advertising Review Council, that ConsumerAffairs “creates biased and negative portrayals of companies that don’t pay for its service called ConsumerAffairs for Brands.” The service collects reviews from customers and gives brands an opportunity to respond. The ERSP “determined that ConsumerAffairs did not adequately disclose its paid affiliation with company members on its website and recommended it do it in a more clear and conspicuous manner.” After reviewing ERSP’s recommendations, a banner disclosing paid affiliation or non-paying affiliation was added to the ConsumerAffairs website. ConsumerAffairs reported that, of the 115 paying companies, 80% of paying companies received a 3.5 star or higher rating and 20% of paying companies received a rating lower than 3.5 stars.[7]

Nemet Chevrolet, Ltd v. Consumeraffairs.com

On June 18, 2008, Nemet Chevrolet, Ltd, a car dealership, filed a civil action lawsuit against ConsumerAffairs.com for "liable for defamation, tortious interference with a business expectancy, unfair competition under § 43(a)(1)(A) of the Lanham Act, and false advertising under § 43(a)(1)(B) of the Lanham Act." It was case number 1:08cv254 (GBL). The case was decided on June 18, 2008 in the US District Court for the Eastern District of Virginia, Alexandria Division. The case was judged by Gerald Bruce Lee. The court found that Section 230 of the Communications Decency Act provided Consumeraffairs.com immunity from liability.[8]

Nemet Chevrolet, Ltd appealed the decision in Nemet Chevrolet, Ltd v. Consumeraffairs.com, Inc, 08-2097. The case was decided on December 29, 2009 by US Circuit Judges King and Agee and US District Judge James P. Jones in the US Fourth Circuit. The appeals court found that the district court did not err in its interpretation of Rules 12(b)(6) of Section 230.[9]

See also

References

  1. ^ Thompson, Tara Lynn (July 2012). "Tech savvy". Tulsa People. Retrieved 28 August 2014. "The emergence of a community focus on entrepreneurship and the emergence of a support ecosystem … all work together to facilitate entrepreneurship," says Zac Carman, CEO of ConsumerAffairs, a consumer and advocacy website founded in 1998.
  2. ^ "About us". Retrieved 28 May 2016.
  3. ^ STANCAVAGE, JOHN. "John Stancavage: Consumer web publication growing downtown". Tulsa World. Retrieved 28 May 2016.
  4. ^ WALTON, ROD. "5 Questions: Zac Carman of ConsumerAffairs". Tulsa World. Retrieved 28 May 2016.
  5. ^ Newlands, Murray. "Authenticity Is Key For Online Reviews". Forbes. Archived from the original on October 31, 2015. Retrieved 28 May 2016. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  6. ^ a b "New Tenant Renovates Part Of Tulsa's Petroleum Club Building". News on 6 Now. Retrieved 28 May 2016.
  7. ^ "WHO IS CONSUMERAFFAIRS.COM REALLY ADVOCATING FOR?". Truth in Advertising. Retrieved 28 May 2016.
  8. ^ Carome, Patrick; Jain, Samir; Coleman, Judy (February 17, 2010). "Fourth Circuit Augments Protections for Online Intermediaries under CDA § 230" (PDF). Electronic Commerce & Law. 15 (7): 1–4. Retrieved 28 May 2016.
  9. ^ "Nemet Chevrolet, Ltd. v. Consumeraffairs.com, Inc., 08-2097 - See more at: http://caselaw.findlaw.com/summary/opinion/us-4th-circuit/2009/12/29/167446.html#sthash.rIrSbmNQ.dpuf". Retrieved 28 May 2016. {{cite web}}: External link in |title= (help)