Current:Home > InvestThe FTC is targeting fake customer reviews in a bid to help real-world shoppers -EliteFunds
The FTC is targeting fake customer reviews in a bid to help real-world shoppers
View
Date:2025-04-11 13:30:47
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! (64)
Related
- Whoopi Goldberg is delightfully vile as Miss Hannigan in ‘Annie’ stage return
- Harry Potter Actress Katie Leung Is Joining Bridgerton Season 4—as a Mom
- 'Jackass' star Steve-O says he scrapped breast implants prank after chat with trans stranger
- Webb telescope captures outskirts of Milky Way in 'unprecedented' detail: See photo
- Juan Soto praise of Mets' future a tough sight for Yankees, but World Series goal remains
- Bachelorette's Jenn Tran Clarifies Jonathan Johnson Relationship After Devin Strader Breakup
- Sean ‘Diddy’ Combs’ faces federal charges in New York, his lawyer says
- WNBA's Caitlin Clark Celebrates Boyfriend Connor McCaffery's Career Milestone
- Intellectuals vs. The Internet
- Bill Gates calls for more aid to go to Africa and for debt relief for burdened countries
Ranking
- Meta releases AI model to enhance Metaverse experience
- 'Jackass' star Steve-O says he scrapped breast implants prank after chat with trans stranger
- Harry Potter Actress Katie Leung Is Joining Bridgerton Season 4—as a Mom
- A woman found dead in 1991 in an Illinois cornfield is identified as being from the Chicago area
- EU countries double down on a halt to Syrian asylum claims but will not yet send people back
- Sean ‘Diddy’ Combs’ faces federal charges in New York, his lawyer says
- Sean 'Diddy' Combs charged with sex trafficking for 'widely known' abuse, indictment says
- Georgia official seeks more school safety money after Apalachee High shooting
Recommendation
Apple iOS 18.2: What to know about top features, including Genmoji, AI updates
23andMe agrees to $30 million settlement over data breach that affected 6.9 million users
Sean Diddy Combs Allegedly Forced Victims Into Drug-Fueled Freak-Off Sex Performances
The hormonal health 'marketing scheme' medical experts want you to look out for
Selena Gomez engaged to Benny Blanco after 1 year together: 'Forever begins now'
Mother of Colorado supermarket gunman says he is ‘sick’ and denies knowing about plan
Why Josh Gad Regrets Using His Voice for Frozen's Olaf
ESPN's Peter Burns details how Missouri fan 'saved my life' as he choked on food