Current:Home > InvestPoinbank:The FTC is targeting fake customer reviews in a bid to help real-world shoppers -MoneySpot
Poinbank:The FTC is targeting fake customer reviews in a bid to help real-world shoppers
Poinbank View
Date:2025-04-10 09:01:57
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 Poinbankvisiting 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! (6293)
Related
- See you latte: Starbucks plans to cut 30% of its menu
- Clint Eastwood's Daughter Morgan Gives Birth, Welcomes First Baby With Tanner Koopmans
- Jayden Daniels showcases dual-threat ability to keep Commanders running strong
- North Carolina residents impacted by Helene likely to see some voting changes
- What to know about Tuesday’s US House primaries to replace Matt Gaetz and Mike Waltz
- Madonna’s Brother Christopher Ciccone Dead at 63
- TikToker Taylor Rousseau Grigg’s Husband Speaks Out After Her Death
- Christopher Ciccone, Madonna’s brother and longtime collaborator, dies at 63: 'He's dancing somewhere'
- Taylor Swift Eras Archive site launches on singer's 35th birthday. What is it?
- Guster, Avett Brothers and Florence Welch are helping bring alt-rock to the musical theater stage
Ranking
- 'Survivor' 47 finale, part one recap: 2 players were sent home. Who's left in the game?
- RHOSLC Star Whitney Rose's 14-Year-Old Daughter Bobbie Taken to the ICU
- Bear with 3 cubs attacks man after breaking into Colorado home
- Connecticut Sun force winner-take-all Game 5 with win over Minnesota Lynx
- Skins Game to make return to Thanksgiving week with a modern look
- Milton to become a major hurricane Monday as it heads for Florida | The Excerpt
- New Red Lobster CEO Damola Adamolekun: Endless shrimp created 'chaos' but could return
- Week 6 college football grades: Temple's tough turnover, Vanderbilt celebration lead way
Recommendation
'Squid Game' without subtitles? Duolingo, Netflix encourage fans to learn Korean
Tropical Storm Milton could hit Florida as a major hurricane midweek
New Red Lobster CEO Damola Adamolekun: Endless shrimp created 'chaos' but could return
Olivia Munn Details Journey to Welcome Daughter Méi Amid Cancer Battle
The FBI should have done more to collect intelligence before the Capitol riot, watchdog finds
Padres' Jurickson Profar denies Dodgers' Mookie Betts of home run in first inning
Aaron Rodgers injury update: Jets QB suffers low-ankle sprain vs. Vikings
'I have receipts': Breanna Stewart emotional after Liberty get revenge over Aces