Fake review writers are officially on watch - the US is now enforcing a new rule to ban the practice and is promising a crackdown.
"As of today, @FTC's final rule banning fake online reviews and testimonials has come into effect," the head of the agency Lina Khan wrote on X (formerly Twitter). "If you encounter any of these prohibited practices, you can report them to @FTC at: https://reportfraud.ftc.gov."
The rules, introduced in August after a lengthy consultation process, could upend what has been a very profitable business for some reviewers. The FTC is threatening to fine such scammers, and the sites and businesses that promote them, up to $50,120 per violation. The illegal acts include:
Fake reviews abound on the internet, and for some websites and even individuals, they can be very profitable. But a 2022 study [PDF] cited by the FTC warns that such fakery cost consumers 12 cents for every dollar spent, not to mention a lot of disappointed buyers.
While some rules against such deceptive practices are in place, they require a regulator that's serious about using them. Under Khan, the agency has actually started enforcing the law and - in the case of fake reviews - this has already resulted in a penalty.
In 2023, the FTC launched an action against The Bountiful Company, accusing it of using a deceptive practice called "review hijacking" on Amazon, in which a marketer steals or repurposes reviews of another product. In a settlement, the company agreed to pay a penalty.
"Boosting your products by hijacking another product's ratings or reviews is a relatively new tactic, but is still plain old false advertising," said Samuel Levine, director of the FTC's Bureau of Consumer Protection. "The Bountiful Company is paying back $600,000 for manipulating product pages and deceiving consumers."
Even some previously respectable review sites have fallen into the practice and, if caught, can expect to get a knock on the door from investigators. Amazon too might want to take the culling of fake reviews from its site a little more seriously, as should those looking to deploy AI to boost their profiles. ®
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