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:2025-04-24 12:29:58
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! (5)
Related
- IRS recovers $4.7 billion in back taxes and braces for cuts with Trump and GOP in power
- Forensic musicologists race to rescue works lost after the Holocaust
- Grab a tissue and get emotional with 'Dear Edward'
- Is 'Creed III' a knockout?
- Macy's says employee who allegedly hid $150 million in expenses had no major 'impact'
- Ross Gay on inciting joy while dining with sorrow
- 'Olivia' creator and stage designer Ian Falconer dies at 63
- 2023 Oscars Guide: Original Song
- A Mississippi company is sentenced for mislabeling cheap seafood as premium local fish
- Panic! at the Disco is ending after nearly two decades
Ranking
- New Zealand official reverses visa refusal for US conservative influencer Candace Owens
- Fear, Florida, and The 1619 Project
- 'Hot Dog' wins Caldecott, Newbery is awarded to 'Freewater'
- How to watch the Oscars on Sunday night
- McConnell absent from Senate on Thursday as he recovers from fall in Capitol
- 2023 Oscars Preview: Who will win and who should win
- How Groundhog Day came to the U.S. — and why we still celebrate it 137 years later
- Harvey Weinstein will likely spend the rest of his life in prison after LA sentence
Recommendation
Are Instagram, Facebook and WhatsApp down? Meta says most issues resolved after outages
At 3 she snuck in to play piano, at nearly 80, she's a Colombian classical legend
See all the red carpet looks from the 2023 Oscars
Psychologist Daniel Levitin dissects Pink Floyd's 'Dark Side of the Moon'
Taylor Swift makes surprise visit to Kansas City children’s hospital
Shlomo Perel, a Holocaust survivor who inspired the film 'Europa Europa,' dies at 98
Raquel Welch, actress and Hollywood sex symbol, dead at 82
How Groundhog Day came to the U.S. — and why we still celebrate it 137 years later