A VC’s Amazon Review, and a Quirky Approach to Disclosure; Is it ethical for a venture capital investor to praise a product put out by a company he’s invested in without disclosing his financial interest?
July 10, 2014 Leave a comment
Jul 9, 2014
A VC’s Amazon Review, and a Quirky Approach to Disclosure
Is it ethical for a venture capital investor to praise a product put out by a company he’s invested in without disclosing his financial interest?
James D. Robinson IV, a founder of RRE Ventures in New York City, which is currently investing from a $280 million fund raised this year, did just that. RRE is an investor in Quirky Inc., Palantir Technologies Inc. and OnDeck Capital Inc.
In a review on Amazon.com AMZN +1.90%, Robinson praised Aros, an air conditioner introduced in May by Quirky Inc. and General Electric GE -0.19%, rating it a high five out of five stars.
“Beautiful, functional, smart,” he wrote. “As for cooling, seems to do a great job, and unlike some, it just doesn’t seem any louder to me.” The loudness remark was a response to some critics who had cited the “noise” in their own Amazon reviews.
http://blogs.wsj.com/digits/2014/07/09/an-amazon-review-and-a-quirky-approach-to-disclosure/
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