The FTC estimates that nearly one in every three online reviews is fake
The Federal Trade Commission (FTC) is taking action against deceptive advertising in the digital age by proposing new measures to crack down on fake review and endorsement practices.
Online customer reviews have become a crucial source of information for consumers to make purchase decisions, and FTC’s initiative aims to create a more transparent marketplace for all.
The commission estimates that nearly one in every three reviews is fake, highlighting the need for stricter regulations.
The proposed rule prohibits
- Selling or obtaining fake consumer reviews and testimonials.
- Review hijacking, where a review for one product is repurposed for a different product.
- Buying positive or negative reviews by offering compensation or incentives.
- Illegal review suppression using threats of false accusations.
- Selling fake social media indicators of influence.
The commission highlighted examples of deceptive practices involving consumer reviews and testimonials from the past, emphasizing the growing threat of generative AI to fabricate fake reviews.