Current:Home > NewsThe FTC is targeting fake customer reviews in a bid to help real-world shoppers -MacroWatch
The FTC is targeting fake customer reviews in a bid to help real-world shoppers
View
Date:2025-04-14 10:32:12
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! (61747)
Related
- What do we know about the mysterious drones reported flying over New Jersey?
- The Democrats Miss Another Chance to Actually Debate Their Positions on Climate Change
- Over-the-counter Narcan will save lives, experts say. But the cost will affect access
- How seniors could lose in the Medicare political wars
- Pregnant Kylie Kelce Shares Hilarious Question Her Daughter Asked Jason Kelce Amid Rising Fame
- Which type of eye doctor do you need? Optometrists and ophthalmologists face off
- Ulta's New The Little Mermaid Collection Has the Cutest Beauty Gadgets & Gizmos
- For Many Nevada Latino Voters, Action on Climate Change is Key
- New Zealand official reverses visa refusal for US conservative influencer Candace Owens
- Global Shipping Inches Forward on Heavy Fuel Oil Ban in Arctic
Ranking
- Louvre will undergo expansion and restoration project, Macron says
- UK Carbon Emissions Fall to 19th Century Levels as Government Phases Out Coal
- For these virus-hunting scientists, the 'real gold' is what's in a mosquito's abdomen
- 'Dr. Lisa on the Street' busts health myths and empowers patients
- Skins Game to make return to Thanksgiving week with a modern look
- One Direction's Liam Payne Shares He's More Than 100 Days Sober
- Medicare announces plan to recoup billions from drug companies
- Amid Boom, U.S. Solar Industry Fears End of Government Incentives
Recommendation
New Mexico governor seeks funding to recycle fracking water, expand preschool, treat mental health
Meghan Markle Is Glittering in Gold During Red Carpet Date Night With Prince Harry After Coronation
14 Creepy, Kooky, Mysterious & Ooky Wednesday Gifts for Fans of the Addams Family
NYC Mayor Eric Adams Calls Out Reckless and Irresponsible Paparazzi After Harry and Meghan Incident
New data highlights 'achievement gap' for students in the US
In Charleston, S.C., Politics and Budgets Get in the Way of Cutting Carbon Emissions
Regulators Demand Repair of Leaking Alaska Gas Pipeline, Citing Public Hazard
Cost of Climate Change: Nuisance Flooding Adds Up for Annapolis’ Historic City Dock