Current:Home > ContactThe FTC is targeting fake customer reviews in a bid to help real-world shoppers -FinanceMind
The FTC is targeting fake customer reviews in a bid to help real-world shoppers
View
Date:2025-04-13 00:47:21
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! (64822)
Related
- Finally, good retirement news! Southwest pilots' plan is a bright spot, experts say
- Worried about running out of money in retirement? These tips can help
- Sylvester Stallone returns to Philadelphia for inaugural 'Rocky Day': 'Keep punching!'
- 'SNL' sends off George Santos with song, Tina Fey welcomes Emma Stone into Five-Timers Club
- Kylie Jenner Shows Off Sweet Notes From Nieces Dream Kardashian & Chicago West
- Horoscopes Today, December 3, 2023
- Bowl projections: Texas, Alabama knock Florida State out of College Football Playoff
- Opening statements begin in Jonathan Majors assault trial in New York
- Federal hiring is about to get the Trump treatment
- Hong Kong pro-democracy activist Agnes Chow jumps bail and moves to Canada
Ranking
- Mets have visions of grandeur, and a dynasty, with Juan Soto as major catalyst
- Israel expands Gaza ground offensive, says efforts in south will carry no less strength than in north
- Woman, 65, receives bloodless heart transplant, respecting her Jehovah's Witness beliefs
- 70-year-old woman gives birth to twins in Uganda, doctor says
- What do we know about the mysterious drones reported flying over New Jersey?
- South Africa intercepts buses carrying more than 400 unaccompanied children from Zimbabwe
- Winners, losers from 49ers' blowout win against Eagles: Cowboys, Lions get big boost
- Italian city of Bologna braces for collapse of leaning Garisenda Tower
Recommendation
What were Tom Selleck's juicy final 'Blue Bloods' words in Reagan family
Atmospheric rivers forecast for Pacific Northwest, with flood watches in place
Fire blamed on e-bike battery kills 1, injures 6 in Bronx apartment building
OxyContin maker bankruptcy deal goes before the Supreme Court on Monday, with billions at stake
Federal Spending Freeze Could Have Widespread Impact on Environment, Emergency Management
Plan to add teaching of Holocaust, genocide to science education draws questions from Maine teachers
How to stage a Griswold-size Christmas light display without blowing up your electric bill
Michigan takes over No. 1 spot in US LBM Coaches Poll after Georgia's loss