Fake reviews will be nowhere to hide! The US FTC plans to introduce new regulations!

Fake reviews will be nowhere to hide! The US FTC plans to introduce new regulations!

It is learned that according to foreign media reports, the US Federal Trade Commission (FTC) will introduce new regulations to crack down on false positive reviews, curb negative reviews and pay for positive reviews.

 

The FTC has been cracking down on fake reviews, and has issued guidance to major online platforms, but without regulatory authority, it has been unable to stop the increase in fake reviews.

 

"Because consumers rely on reviews when purchasing a product or service, fake reviews can drive sales of low-quality products or services," the FTC said. "Unfortunately, the explosive growth of online marketplaces and platforms has made it easier for some companies and sellers to fabricate and use fake reviews to drive sales. This makes it difficult for consumers to distinguish real recommendations and provides bad actors with every incentive to use this illegal practice."

 

"Deceptive and manipulated reviews deceive consumers and cause businesses to lose credibility," the agency said in a statement.

 

The FTC is exploring a new rule to impose civil penalties on people who create fake reviews in an effort to make online commerce fairer, FTC Commissioner Samuel Levine said.

 

According to the Advanced Notice of Proposed Rulemaking (“ANPR”) published on the FTC’s website, the FTC is seeking public comment on the following conduct:

 

  • Fake reviews: Reviews posted by people who don’t exist, who haven’t used the product or service, or who are lying about their experience
  • Review repurposing fraud: stealing or repurposing a review from another product or service.
  • Paid reviews: Companies or sellers pay to purchase positive reviews of their products, or induce buyers to post negative reviews of competitor products.
  • Insider Reviews: Reviews written by company executives or employees without disclosing their relationship with the business.
  • Review Suppression: A company claims that its website displays customer-submitted reviews, but in reality suppresses or deletes negative reviews. A company may even try to suppress reviews on other platforms by threatening buyers (reviewers).
  • Fake review sites: This practice involves a company or seller setting up a so-called independent website or organization to provide reviews for products.
  • Buy Followers: Buy or sell followers, subscribers, or comments as an indicator of social media influence.

Editor ✎ Nicole/

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