Current:Home > FinanceThe FTC is targeting fake customer reviews in a bid to help real-world shoppers-LoTradeCoin
The FTC is targeting fake customer reviews in a bid to help real-world shoppers
View Date:2024-12-23 19:29:20
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! (7342)
Related
- Gisele Bündchen Makes First Major Appearance Since Pregnancy
- Love Hallmark Christmas movies? This company is hiring a reviewer for $2,000
- Tiffany Haddish charged with DUI after arrest in Beverly Hills
- Eating out on Thanksgiving? You're not alone. Some Americans are opting not to cook
- Michelle Obama Is Diving Back into the Dating World—But It’s Not What You Think
- Garth Brooks: Life's better with music in it
- Republican ex-federal prosecutor in Philadelphia to run for Pennsylvania attorney general
- Black Friday 2023 store hours: When do Walmart, Target, Costco, Best Buy open and close?
- US wholesale inflation picks up slightly in sign that some price pressures remain elevated
- Israeli government approves Hamas hostage deal, short-term cease-fire in Gaza
Ranking
- Barbora Krejcikova calls out 'unprofessional' remarks about her appearance
- Caitlin Clark is a scoring machine. We’re tracking all of her buckets this season
- Jonathan Bailey’s Wicked Tease Will Have Fans Dancing Through Life
- Oprah's Favorite Things 2023: Cute, Cozy & Chic Small Business Finds on Amazon
- DWTS’ Ilona Maher and Alan Bersten Have the Best Reaction to Fans Hoping for a Romance
- Kentucky train derailment causes chemical spill, forces evacuations
- Sean 'Diddy' Combs accused of sexual abuse by two more women
- Russia launches largest drone attack on Ukraine since start of invasion, says Ukrainian military
Recommendation
-
A pair of Trump officials have defended family separation and ramped-up deportations
-
Massachusetts is creating overnight shelter spots to help newly arriving migrant families
-
Argentina and Brazil charged by FIFA after fan violence delays World Cup qualifying game at Maracana
-
Sean 'Diddy' Combs accused of 1991 sexual assault of college student in second lawsuit
-
Lala Kent Swears by This Virgo-Approved Accessory and Shares Why Stassi Schroeder Inspires Her Fall Style
-
Gaza shrinks for Palestinians seeking refuge. 4 stories offer a glimpse into a diminished world
-
At least 9 people killed in Syrian government shelling of a rebel-held village, the opposition says
-
Papa John's to pay $175,000 to settle discrimination claim from blind former worker