Current:Home > InvestCharles Langston:The FTC is targeting fake customer reviews in a bid to help real-world shoppers -×
Charles Langston:The FTC is targeting fake customer reviews in a bid to help real-world shoppers
TradeEdge Exchange View
Date:2025-04-08 17:43:16
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 Charles Langstonvisiting 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! (4)
Related
- Where will Elmo go? HBO moves away from 'Sesame Street'
- The Daily Money: Saying no to parenthood
- Income gap between Black and white US residents shrank between Gen Xers and millennials, study says
- The Daily Money: Saying no to parenthood
- Appeals court scraps Nasdaq boardroom diversity rules in latest DEI setback
- Frederick Richard next poster athlete for men's gymnastics after team bronze performance
- Inflation rankings flip: Northeast has largest price jumps, South and West cool off
- Alexander Mountain Fire spreads to nearly 1,000 acres with 0% containment: See map
- Can Bill Belichick turn North Carolina into a winner? At 72, he's chasing one last high
- Trump endorses Republican rivals in swing state Arizona congressional primary
Ranking
- Tarte Shape Tape Concealer Sells Once Every 4 Seconds: Get 50% Off Before It's Gone
- UCLA ordered by judge to craft plan in support of Jewish students
- A Pretty Woman Reunion, Ben Affleck's Cold Feet and a Big Payday: Secrets About Runaway Bride Revealed
- 2024 Olympics: Why Hezly Rivera Won’t Compete in Women’s Gymnastics Final
- Tarte Shape Tape Concealer Sells Once Every 4 Seconds: Get 50% Off Before It's Gone
- Illinois sheriff, whose deputy killed Sonya Massey apologizes: ‘I offer up no excuses’
- Wetland plant once nearly extinct may have recovered enough to come off the endangered species list
- Gymnastics at 2024 Paris Olympics: How scoring works, Team USA stars, what to know
Recommendation
Krispy Kreme offers a free dozen Grinch green doughnuts: When to get the deal
Perfect photo of near-perfect surfer goes viral at 2024 Olympics
Evacuations ordered for Colorado wildfire as blaze spreads near Loveland: See the map
Best of 'ArtButMakeItSports': Famed Social media account dominates Paris Olympics' first week
Intel's stock did something it hasn't done since 2022
Walmart Fashion Finds That Look Expensive, Starting at Only $8
Terrell Davis says United banned him after flight incident. Airline says it was already rescinded
Sheriff in charge of deputy who killed Sonya Massey declines to resign, asks for forgiveness
Tags
Like
- Dick Vitale announces he is cancer free: 'Santa Claus came early'
- Man who followed woman into her NYC apartment and stabbed her to death sentenced to 30 years to life
- ‘Vance Profits, We Pay The Price’: Sunrise Movement Protests J.D. Vance Over Billionaire Influence and Calls on Kamala Harris to Take Climate Action