Current:Home > MyThe FTC is targeting fake customer reviews in a bid to help real-world shoppers -WealthSync Hub
The FTC is targeting fake customer reviews in a bid to help real-world shoppers
View
Date:2025-04-15 08:53:37
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! (71)
Related
- Global Warming Set the Stage for Los Angeles Fires
- Curb Your Enthusiasm Actor Richard Lewis Dead at 76
- How genetically modified pigs could end the shortage of organs for transplants
- Medicaid expansion proposal advances through Republican-led Mississippi House, will go to Senate
- IRS recovers $4.7 billion in back taxes and braces for cuts with Trump and GOP in power
- Drug kingpin accused of leading well-oiled killing machine gets life sentence in the Netherlands
- NYC’s plan to ease gridlock and pump billions into mass transit? A $15 toll for Manhattan drivers
- Rock legend Rod Stewart on recording some oldies-but-goodies
- Intel's stock did something it hasn't done since 2022
- What we know about 'Only Murders in the Building' Season 4
Ranking
- North Carolina justices rule for restaurants in COVID
- James Beard Foundation honors 'beloved' local restaurants with America's Classics: See who won
- Ryan Gosling will sing 'I'm Just Ken' at the 2024 Oscars: Who else is performing?
- Are you eligible for Walmart's weighted groceries $45 million settlement? What to know
- Are Instagram, Facebook and WhatsApp down? Meta says most issues resolved after outages
- Wind advisories grip the Midwest as storms move east after overnight tornado warnings
- It's not 'all in their head.' Heart disease is misdiagnosed in women. And it's killing us.
- Meet Syracuse's Dyaisha Fair, the best scorer in women's college basketball not named Caitlin Clark
Recommendation
See you latte: Starbucks plans to cut 30% of its menu
Sally Rooney has a new novel, ‘Intermezzo,’ coming out in the fall
Housing market shows no sign of thawing as spring buying season nears
A 911 call claiming transportation chief was driving erratically was ‘not truthful,” police say
Gen. Mark Milley's security detail and security clearance revoked, Pentagon says
NHL trade deadline tracker: Analyzing Dallas Stars deal and others made before March 8
What would happen without a Leap Day? More than you might think
‘Naked Gun’ reboot set for 2025, with Liam Neeson to star