Current:Home > ContactThe FTC is targeting fake customer reviews in a bid to help real-world shoppers -TradeStation
The FTC is targeting fake customer reviews in a bid to help real-world shoppers
Algosensey Quantitative Think Tank Center View
Date:2025-04-10 04:13:59
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! (379)
Related
- At site of suspected mass killings, Syrians recall horrors, hope for answers
- What was 2024's best movie? From 'The Substance' to 'Conclave,' our top 10
- North Carolina announces 5
- Lil Durk suspected of funding a 2022 murder as he seeks jail release in separate case
- The 401(k) millionaires club keeps growing. We'll tell you how to join.
- Morgan Wallen sentenced after pleading guilty in Nashville chair
- When is the 'Survivor' Season 47 finale? Here's who's left; how to watch and stream part one
- Woody Allen and Soon
- Intellectuals vs. The Internet
- 'Vanderpump Rules' star DJ James Kennedy arrested on domestic violence charges
Ranking
- Which apps offer encrypted messaging? How to switch and what to know after feds’ warning
- How to watch 'A Charlie Brown Christmas' for free: Special date, streaming info
- Southern California forecast of cool temps, calm winds to help firefighters battle Malibu blaze
- How to watch 'A Charlie Brown Christmas' for free: Special date, streaming info
- Have Dry, Sensitive Skin? You Need To Add These Gentle Skincare Products to Your Routine
- Kylie Kelce's podcast 'Not Gonna Lie' tops Apple, Spotify less than a week after release
- Drew Barrymore has been warned to 'back off' her guests after 'touchy' interviews
- Luigi Mangione's Lawyer Speaks Out in UnitedHealthcare CEO Murder Case
Recommendation
The White House is cracking down on overdraft fees
'The Voice' Season 26 finale: Coach Michael Bublé scores victory with Sofronio Vasquez
SCDF aids police in gaining entry to cluttered Bedok flat, discovers 73
Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Dropping Hints
South Korea's acting president moves to reassure allies, calm markets after Yoon impeachment
New Jersey, home to many oil and gas producers, eyes fees to fight climate change
'September 5' depicts shocking day when terrorism arrived at the Olympics
Bill Belichick's salary at North Carolina: School releases football coach's contract details