Current:Home > StocksThe FTC is targeting fake customer reviews in a bid to help real-world shoppers -Blueprint Wealth Network
The FTC is targeting fake customer reviews in a bid to help real-world shoppers
View
Date:2025-04-18 01:18:22
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! (682)
Related
- Who are the most valuable sports franchises? Forbes releases new list of top 50 teams
- Trump launches his fall push in Iowa to lock in his lead before the first Republican caucuses
- Another endangered Florida panther struck and killed by vehicle — the 62nd such fatality since 2021
- Video, frantic 911 call capture moments after Amazon delivery driver bitten by highly venomous rattlesnake in Florida
- Tarte Shape Tape Concealer Sells Once Every 4 Seconds: Get 50% Off Before It's Gone
- Surveillance video prompts Connecticut elections officials to investigate Bridgeport primary
- Sports Illustrated Resorts are coming to the US, starting in Tuscaloosa, Alabama
- Kraft issues recall of processed American cheese slices due to potential choking hazard
- Global Warming Set the Stage for Los Angeles Fires
- A sculptor and a ceramicist who grapple with race win 2023 Heinz Awards for the Arts
Ranking
- Google unveils a quantum chip. Could it help unlock the universe's deepest secrets?
- Minnesota woman made $117,000 running illegal Facebook lottery, police say
- Biden administration announces $600M to produce COVID tests and will reopen website to order them
- Biden administration announces $600M to produce COVID tests and will reopen website to order them
- Current, future North Carolina governor’s challenge of power
- TikToker Alix Earle Reflects on Her Dad's Affair With Ashley Dupré
- Work stress can double men's risk of heart disease, study shows
- Guatemalans rally on behalf of president-elect, demonstrating a will to defend democracy
Recommendation
Global Warming Set the Stage for Los Angeles Fires
Meet Methuselah: The world's oldest known aquarium fish is at least 92, DNA shows
Danny Masterson's wife, Bijou Phillips, files for divorce following actor's sentencing for rape convictions
Federal Reserve pauses interest rate hikes — for now
'Kraven the Hunter' spoilers! Let's dig into that twisty ending, supervillain reveal
Deion Sanders is the most famous college football coach ever
Decade of college? Miami tight end petitioning to play ninth season of college football
Boston College suspends swimming and diving program after hazing incident