Current:Home > InvestThe FTC is targeting fake customer reviews in a bid to help real-world shoppers -Insightful Finance Hub
The FTC is targeting fake customer reviews in a bid to help real-world shoppers
View
Date:2025-04-13 16:22:04
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! (79766)
Related
- Gen. Mark Milley's security detail and security clearance revoked, Pentagon says
- Somali president’s son reportedly testifies in Turkey as he is accused of killing motorcyclist
- Burberry’s share price drops 10% as luxury brand warns about trading over crucial Christmas period
- Massachusetts high court rules younger adults cannot be sentenced to life without parole
- Google unveils a quantum chip. Could it help unlock the universe's deepest secrets?
- Tesla is raising factory worker pay as auto union tries to organize its electric vehicle plants
- A Danish appeals court upholds prison sentences for Iranian separatists convicted of terror charges
- Millions of tiny plastic nurdles prompt fears of major troubles in Spain after falling from vessel
- The FTC says 'gamified' online job scams by WhatsApp and text on the rise. What to know.
- US Navy helicopter crew survives crash into ocean in Southern California
Ranking
- Federal hiring is about to get the Trump treatment
- Lily-Rose Depp Celebrates First Dating Anniversary With Girlfriend 070 Shake
- Balletcore Is the Latest Trend That Will Take First Position in Your Closet
- 2 dead, 3 rescued after a boat overturns near a southeast Alaska community
- NFL Week 15 picks straight up and against spread: Bills, Lions put No. 1 seed hopes on line
- Democrat announces long-shot campaign for North Dakota’s only U.S. House seat
- ABC's 'The Good Doctor' is ending with Season 7
- ABC's 'The Good Doctor' is ending with Season 7
Recommendation
Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Hi Hi!
Some Americans will get their student loans canceled in February as Biden accelerates his new plan
Kevin Hart reveals what he'd like to change about comedy in 2024: 'It's all opinion'
US Air Force announces end of search and recovery operations for Osprey that crashed off Japan
Whoopi Goldberg is delightfully vile as Miss Hannigan in ‘Annie’ stage return
Balletcore Is the Latest Trend That Will Take First Position in Your Closet
Pete Davidson Reveals the “Embarrassing” Joke He Told Aretha Franklin’s Family at Her Funeral
The US failed to track more than $1 billion in military gear given Ukraine, Pentagon watchdog says