The encyclopedia · Advertising & PR · Marketing decision · 2019
Devumi sold fake followers to influencers — the FTC shut the market down
Devumi sold fake followers, likes and views, some built from stolen profiles. New York settled first; the FTC followed with a $2.5M judgment.
Devumi · 2019-10
What happened
Devumi and its related companies DisruptX, Social Bull and Bytion, all owned by German Calas Jr., sold fake followers, likes, views and subscribers for Twitter, LinkedIn, YouTube, Pinterest, Vine and SoundCloud. Delivery came from bot accounts and 'sock-puppet' accounts run by one person pretending to be many; some copied real people's photos and profiles without their knowledge or consent. The customers were influencers, musicians and professionals buying the appearance of reach.
On 30 January 2019, New York Attorney General Letitia James announced a settlement she called the first of its kind, barring the companies from selling fake engagement, using bot or sock-puppet accounts, or impersonating real people. On 21 October 2019 the FTC followed, charging that Devumi had supplied the means to deceive clients, investors and audiences, and settling with a $2.5 million judgment against Calas, suspended on payment of $250,000; the order barred him from selling social-media influence outright.
FTC consumer-protection director Andrew Smith stated it as a rule: 'Posting fake reviews on shopping websites or buying and selling fake followers is illegal.' The twin settlements marked the moment inflated reach stopped being a grey-market service and became an enforcement target.
Why it happened
- The product was deception by design: buyers paid to mislead clients and audiences, and the seller was liable for handing them the means.
- Fake accounts built from real people's stolen photos turned the scheme from fraud into impersonation, raising the enforcement stakes.
- The demand side created the market: influencers and brands buying reach kept the sellers in business until regulators priced it.
The lesson
Bought reach is a misrepresentation with a price, and the seller is liable alongside the buyer. Audit the growth you pay for before a regulator does.
Aftermath
The FTC order remains in force against Calas, and the New York settlement made fake engagement an explicit enforcement category later written into the FTC's endorsement guides. Brands now face disclosure and authenticity checks in most agency contracts.
Sources
- FTC press release — Devumi, Owner and CEO Settle FTC Charges They Sold Fake Indicators of Social Media Influence
- New York Attorney General — Attorney General James Announces Groundbreaking Settlement With Sellers of Fake Followers
- TechCrunch — FTC settles with Devumi, a company that sold fake followers, for $2.5M
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