Current:Home > InvestThe FTC is targeting fake customer reviews in a bid to help real-world shoppers -Apex Profit Path
The FTC is targeting fake customer reviews in a bid to help real-world shoppers
View
Date:2025-04-24 16:05:43
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! (73)
Related
- Man can't find second winning lottery ticket, sues over $394 million jackpot, lawsuit says
- An Oklahoma judge who sent more than 500 texts during a murder trial resigns
- Virtually visit an island? Paint a picture? The Apple Vision Pro makes it all possible.
- Where is the Super Bowl this year, and what are the future locations after 2024?
- Trump invites nearly all federal workers to quit now, get paid through September
- Antonio Gates, coping after not being voted into Hall of Fame, lauds 49ers' George Kittle
- 'That level of violence is terrifying': Mexican cartel targets tranquil Puget Sound city
- Senate slowly forges ahead on foreign aid bill
- Toyota to invest $922 million to build a new paint facility at its Kentucky complex
- Colin Jost revealed as headliner for the 2024 White House Correspondents' Dinner
Ranking
- Federal court filings allege official committed perjury in lawsuit tied to Louisiana grain terminal
- Gabrielle Union, Olivia Culpo, Maluma and More Stars Who Had a Ball at Super Bowl 2024 Parties
- San Francisco 49ers Wife Kristin Juszczyk Shares Tips to Rework Your Game Day Wardrobe
- 5 key takeaways from the Supreme Court arguments over Trump's 2024 ballot eligibility
- McKinsey to pay $650 million after advising opioid maker on how to 'turbocharge' sales
- New Jersey teen sues classmate for allegedly creating, sharing fake AI nudes
- Good thing, wings cost less and beer's flat: Super Bowl fans are expected to splurge
- Harris slams ‘politically motivated’ report as Biden to name task force to protect classified docs
Recommendation
Federal hiring is about to get the Trump treatment
An Ohio city settles with a truck driver and a former K-9 officer involved in July attack
How King Charles and Kate Middleton’s Health Challenges Are Already Changing the Royal Family
'Lover, Stalker, Killer' star on Liz Golyar's cruelty: 'The level of cold-heartedness'
The White House is cracking down on overdraft fees
30-foot decaying gray whale found washed ashore in Huntington Beach, California after storm
See Kylie Jenner Debut Short Bob Hair Transformation in Topless Selfie
FBI says Tennessee man wanted to 'stir up the hornet's nest' at US-Mexico border by using bombs, firearms