Current:Home > StocksThe FTC is targeting fake customer reviews in a bid to help real-world shoppers -ProfitQuest Academy
The FTC is targeting fake customer reviews in a bid to help real-world shoppers
View
Date:2025-04-13 21:46:35
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! (3)
Related
- Sam Taylor
- Real Housewives of Dubai Reunion Trailer Teases a Sugar Daddy Bombshell & Blood Bath Drama
- George Clooney calls Joe Biden 'selfless' for dropping out of 2024 presidential race
- Disagreement between neighbors in Hawaii prompts shooting that leaves 4 dead, 2 injured
- At site of suspected mass killings, Syrians recall horrors, hope for answers
- Philadelphia Eagles work to remove bogus political ads purporting to endorse Kamala Harris
- Kara Welsh Case: Man Arrested After Gymnast Dies During Shooting
- Gymnast Kara Welsh’s Coaches and Teammates Mourn Her Death
- San Francisco names street for Associated Press photographer who captured the iconic Iwo Jima photo
- Heat wave to bake Southwest; temperatures could soar as high as 120 degrees
Ranking
- Buckingham Palace staff under investigation for 'bar brawl'
- Police say 4 people fatally shot on Chicago-area subway train
- Sheryl Swoopes fires back at Nancy Lieberman in Caitlin Clark dispute
- Can dogs eat watermelon? Ways to feed your pup fruit safely.
- Retirement planning: 3 crucial moves everyone should make before 2025
- Coast Guard, Navy team up for daring rescue of mother, daughter and pets near Hawaii
- Hyundai unveils 2025 electric SUVs aiming for broader appeal with improved range, charging options
- Montana Democrat Busse releases tax returns as he seeks a debate with Gov. Gianforte
Recommendation
Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Hi Hi!
3 missing in Connecticut town after boating accident
Mongolia ignores an international warrant for Putin’s arrest, giving him a red-carpet welcome
US closes 5-year probe of General Motors SUV seat belt failures due to added warranty coverage
Charges tied to China weigh on GM in Q4, but profit and revenue top expectations
Michael Kors Designer Bag Sale: Snag a $378 Crossbody for $55 & Other Under $100 Deals on Fall Styles
Jewel supports Chappell Roan's harassment comments: 'I've had hundreds of stalkers'
Sarah Michelle Gellar, Freddie Prinze Jr. share sweet photo for wedding anniversary