Current:Home > MarketsThe FTC is targeting fake customer reviews in a bid to help real-world shoppers -Stellar Financial Insights
The FTC is targeting fake customer reviews in a bid to help real-world shoppers
View
Date:2025-04-18 11:16:54
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! (84228)
Related
- EU countries double down on a halt to Syrian asylum claims but will not yet send people back
- Cardi B and Offset Reunite at 2024 Met Gala After-Party Months After They Confirmed Their Latest Breakup
- Tom Holland Proves He’s The Most Supportive Boyfriend After Zendaya’s 2024 Met Gala Triple Serve
- Australian boy killed by police was in deradicalization program since causing school explosion
- Meet the volunteers risking their lives to deliver Christmas gifts to children in Haiti
- Boeing's Starliner mission was scrubbed Monday. Here's when it will try to launch again.
- Equinox's new fitness program aims to help you live longer — for $40,000
- Zendaya Debuts Edgiest Red Carpet Look Yet at Met Gala 2024
- 'Malcolm in the Middle’ to return with new episodes featuring Frankie Muniz
- Watch all the Met Gala red carpet arrivals and see the 2024 looks
Ranking
- Finally, good retirement news! Southwest pilots' plan is a bright spot, experts say
- All eyes on The Met: What celebs will see inside Monday's high-fashion gala
- Pro-Palestinian protesters retake MIT encampment, occupy building at Rhode Island School of Design
- Wisconsin wedding barns sue over state’s new liquor law requiring licensing
- In ‘Nickel Boys,’ striving for a new way to see
- 2024 Met Gala: Tyla Gets Carried Up the Stairs in Hourglass Red Carpet Look
- Hilary Duff Welcomes Baby No. 4, Her Third With Husband Matthew Koma
- The Kardashians at the Met Gala: Check out the reality-TV family's 'Sleeping Beauties' looks
Recommendation
Who are the most valuable sports franchises? Forbes releases new list of top 50 teams
Donald Trump calls Joe Biden weak on antisemitism, ignoring his own rhetoric
New York governor regrets saying Black kids in the Bronx don’t know what a computer is
This is the FJ Cruiser pickup truck that Toyota should have built
Federal hiring is about to get the Trump treatment
What to do during a tornado warning: How to stay safe at home, outside, in a car
7 best cozy games to check out now on Nintendo Switch, including 'Endless Ocean Luminous'
You Might've Missed This Euphoria Reunion at Met Gala 2024