Current:Home > MarketsThe FTC is targeting fake customer reviews in a bid to help real-world shoppers -WealthEngine
The FTC is targeting fake customer reviews in a bid to help real-world shoppers
View
Date:2025-04-16 14:16:10
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! (3)
Related
- Who's hosting 'Saturday Night Live' tonight? Musical guest, how to watch Dec. 14 episode
- Christina Hall Responds to Speculation She's Pregnant With Baby No. 4
- Ex-NBA G League player, former girlfriend to face charges together in woman’s killing in Vegas
- 'You Are What You Eat': Meet the twins making changes to their diet in Netflix experiment
- Spooky or not? Some Choa Chu Kang residents say community garden resembles cemetery
- Australia launches inquiry into why Cabinet documents relating to Iraq war remain secret
- Washington respect tour has one more stop after beating Texas in the Sugar Bowl
- Arizona border crossing with Mexico to reopen a month after migrant influx forced closure
- Jamie Foxx gets stitches after a glass is thrown at him during dinner in Beverly Hills
- ESPN apologizes for showing video of woman flashing breast during Sugar Bowl broadcast
Ranking
- Retirement planning: 3 crucial moves everyone should make before 2025
- Coach-to-player comms, sideline tablets tested in bowl games, but some schools decided to hold off
- What's open today? New Year's Day hours for restaurants, stores and fast-food places.
- ‘Bachelorette’ Rachel Lindsay’s husband, Bryan Abasolo, files for divorce after 4 years of marriage
- Rams vs. 49ers highlights: LA wins rainy defensive struggle in key divisional game
- Arkansas family identified in house explosion that killed 4 in Michigan
- 9 ways to get healthier in 2024 without trying very hard
- People in prison explain what music means to them — and how they access it
Recommendation
Could Bill Belichick, Robert Kraft reunite? Maybe in Pro Football Hall of Fame's 2026 class
Netflix, not football, is on menu for Alabama coach Nick Saban after Rose Bowl loss to Michigan
Powerball second chance drawing awards North Carolina woman $1 million on live TV
What to know about changes to this year’s FAFSA application for college students
Civic engagement nonprofits say democracy needs support in between big elections. Do funders agree?
Los Angeles County sheriff releases video of fatal shooting of woman who reported domestic violence
Forest Whitaker’s Ex-Wife Keisha Nash Whitaker’s Cause of Death Revealed
What to know about changes to this year’s FAFSA application for college students