Current:Home > FinanceThe FTC is targeting fake customer reviews in a bid to help real-world shoppers -MarketLink
The FTC is targeting fake customer reviews in a bid to help real-world shoppers
View
Date:2025-04-14 10:41:36
Those of us who shop online may scan customer reviews to get a better sense of products we can't judge for ourselves at a brick-and-mortar store. We may check out online testimonials before booking a haircut or visiting a new restaurant.
But what happens if some of those reviews can't be trusted?
The Federal Trade Commission announced Friday that it's proposing new measures to crack down on fake reviews and other practices used to mislead consumers trying to educate themselves about a potential purchase.
The commission published a proposed rule that would prohibit companies from writing or selling fake reviews, buying positive reviews, illegally suppressing negative reviews and more.
"Our proposed rule on fake reviews shows that we're using all available means to attack deceptive advertising in the digital age," Samuel Levine, director of the FTC's Bureau of Consumer Protection, said in a statement.
"The rule would trigger civil penalties for violators and should help level the playing field for honest companies," Levine added.
Research shows people overwhelmingly consult online reviews before opening their wallet, but humans are also bad at telling which consumer reviews hold water and which are full of hot air.
That's potentially worrisome given that nearly one in every three reviews is fake, according to one estimate.
In arguing for the proposal, the FTC cited enforcement actions it had taken against companies that manipulated reviews of their products.
Last year, for example, the commission forced the online retailer Fashion Nova, LLC to pay $4.2 million to settle allegations that it blocked negative reviews from being posted to its website — the first FTC action involving a company's effort to hide negative reviews. For its part, Fashion Nova said in a statement to the New York Times that the FTC's allegations were "inaccurate" and that it only settled the charges to avoid "the distraction and legal fees."
The emergence of generative AI could also supercharge the proliferation of fake reviews across the internet, the FTC said.
Comments on the proposed rule have to be received within 60 days of its publication in the Federal Register, after which the FTC will decide whether to issue a final rule.
veryGood! (9)
Related
- Questlove charts 50 years of SNL musical hits (and misses)
- Can’t Talk Right Now, Aritzia’s Sale Has the Lowest Deals We’ve Ever Seen With Up to 70% Off Basics
- As Mardi Gras nears, a beefed-up police presence and a rain-scrambled parade schedule in New Orleans
- Report: Feds investigating WWE founder Vince McMahon sex-trafficking allegations
- US appeals court rejects Nasdaq’s diversity rules for company boards
- Olympic skating coach under SafeSport investigation for alleged verbal abuse still coaches
- Jelly Roll duets with Lainey Wilson, more highlights from Spotify's pre-Grammys party
- The 58 greatest players in Super Bowl history: Chiefs' Patrick Mahomes, Travis Kelce make cut
- Nearly 400 USAID contract employees laid off in wake of Trump's 'stop work' order
- Shooting deaths of bartender, husband at Wisconsin sports bar shock community
Ranking
- Spooky or not? Some Choa Chu Kang residents say community garden resembles cemetery
- Joel Embiid set to miss more games with meniscus injury, 76ers say
- 'Argylle' squanders its cast, but not its cat
- Las Vegas Raiders 'expected' to hire Kliff Kingsbury as offensive coordinator, per reports
- Working Well: When holidays present rude customers, taking breaks and the high road preserve peace
- Selena Gomez Shares Intimate Glimpse Into Benny Blanco Romance With Bed Photo
- Arkansas parole board chair was fired from police department for lying about sex with minor
- Sam Waterston to step down on 'Law & Order' as District Attorney Jack McCoy
Recommendation
'Survivor' 47 finale, part one recap: 2 players were sent home. Who's left in the game?
Half of US adults say Israel has gone too far in war in Gaza, AP-NORC poll shows
Shirtless Jason Kelce celebrating brother Travis gets Funko Pop treatment: How to get a figurine
Mayorkas is driven by his own understanding of the immigrant experience. Republicans want him gone
Federal appeals court upholds $14.25 million fine against Exxon for pollution in Texas
Gary Payton rips California's Lincoln University, where he is men's basketball coach
Power restored to BP oil refinery in Indiana after outage prompts evacuation, shutdown, company says
What Iran's leaders and citizens are saying as the U.S. plans strikes on Iranian targets in Iraq and Syria