Fake online reviews ban overview:
- Who: The Federal Trade Commission has proposed a new rule after releasing an advanced notice of proposed rulemaking late last year.
- Why: The new rule is aimed at cracking down on bogus online reviews and other types of online deception.
- Where: Nationwide.
The Federal Trade Commission (FTC) proposed a new rule late last month aimed at cracking down on bogus online reviews and other types of online deception.
The proposed rule would ban companies from buying positive or negative reviews, using insider reviews and consumer testimonials, and creating company controlled review websites that claim to be independent, among other things.
“Our proposed rule on fake reviews shows that we’re using all available means to attack deceptive advertising in the digital age,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, in a statement.
The proposed rules would also prohibit a business from what is known as “review hijacking,” which is when a consumer review written for one product is repurposed to make it appear as though it was created for one that is substantially different.
If approved, Levine said the newly proposed rules would “trigger civil penalties for violators and should help level the playing field for honest companies,” following a 60-day public comment period.
FTC received feedback from consumers, others, prior to rule proposal
The FTC, in its notice of proposed rulemaking, cited examples of consumer reviews and testimonials that were created with “clearly deceptive” practices, and expressed concern over how the emergence of generative AI technology could make it easier to create fake reviews.
The commission previously came out with an advanced notice of proposed rulemaking last November, noting around that time that fake reviews seemed to drive sales and often tended to be associated with lower quality products.
“Companies should know by now that fake reviews are illegal, but this scourge persists,” said Levine, in a statement. “We’re exploring whether a rule that would trigger stiff civil penalties for violators would make the market fairer for consumers and honest businesses.”
The FTC ultimately voted 3-0 to approve the notice of proposed rulemaking, after receiving comments from consumers, trade associations, small businesses, review platform operators, and more.
In other news involving fake reviews, Amazon filed a lawsuit against the owners and operators of NiceDiscount.net last month over claims the company allegedly paid individuals to create fake Amazon reviews.
Have you based an online purchase off of a bogus review? Let us know in the comments!
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42 thoughts onFTC proposes banning fake online reviews
Thank Goodness! The FTC needs to protect business like mine and others from fake reviews, extortion, deception, lies, & slander. It’s way too common for evil to get behind a keyboard nowadays with no consequences for their actions or recourse for those savagely attacked online. After researching it, I found what happened to me and my business has happened to many, many others. For example…I’ve been in business for almost 28 years & had a professional web site long before SEO/SMO was a thing. Yes, it was better back then but creeper’s on the internet are not new. Long story short, I have a private practice & I’ve personally worked very hard, one on one, with every single client I have or have had over the years. 7 months ago some fake 1 star review was put up on Google by someone or something that has never been a client or even at my in-home office… it knocked my 5 star rating (that I’ve had on Google since it started & I listed my business, basically for years) way down and has really wrecked things… including business deals I was offered with co-labs because of my 5 star rating, not to mention new clients finding me & other businesses like mine moving ahead in local search even with a 4.5 due to ratio not ratings. Most of my private clients (some are public figures) don’t post reviews openly online, therefore, I didn’t have that many reviews but the ones I had were legit. This 1 bad review was from someone who lied about everything.. from the supposed 9 hours they spent with me that never happened (I’d remember if I ever spent that long on or with anyone during one visit) & other non fact details. The fake reviewer had no face or picture of any real person’s likeness that could be verified by facial recognition, have never been a client of mine based on what they lied about and with a name I never have had in my appointment book or business records. I also happened to be closed when this fake reviewer stated “her” visit happened & security cameras can prove it. This fake reviewer also gave 1 star reviews to all the local small businesses they reviewed but stated “I rarely give a bad review but..” yada, yada. When I asked this fake bot or person to kindly remove it because they were never a client they didn’t. I then asked Google. They said it was within their policies, felt the bad review was ok by them, & therefore wouldn’t take it down. Really, Google is now judge and jury? For the record, no one employed by Google has been a client of mine (yet) either. I received an extortion email the very next morning saying if I paid thus amount it could be removed. All of this malarkey is against US law accept in 1998 Platforms like Google, Facebook, etc. are not liable for fake reviews or falsehoods. That needs to be reversed as accountability keeps folks more honest. Especially, when credibility and integrity of said information received is in full view of the public on open platforms & it matters. I’m hopeful the FTC will help businesses like mine and the people they serve by doing the right thing to protect small businesses rights. Giving a voice to even one fake naysayer but not allowing business owners or practitioner’s the right to defend themselves or their livelihood by having all baseless attacks removed… is like tying their hands behind their backs while blindfolded and then receiving a punch in the face or gut. I could hire a lawyer and find out under the John Doe law who this fake reviewer is but what if it’s an AI Bot or a under age kid playing a high school prank not someone hired by a competitor or an adult with intent for whatever reason to do irreparable harm? Who is liable then? Do I have $15K to potentially waste to no avail? Bottom line, when slander happens ruining the reputation of a person or business for no reason and is mean spirited, the platform should co-operate to keep the peace and just take it down. In a court of law I could easily prove my case, the fake reviewer could not. Without getting further into details, I don’t have time or resources to put out every small fire. Perhaps, together we are stronger in a joint effort and I’d like to join regarding this issue for the sake of helping all of Us in the long run to have a better online or off experience. Thanks for your consideration in advance.
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Fake reviews i have experienced so many times grom Walmart, wodh & Walmart Money Card! Very irritated and dont like to be lied to!
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