FTC's Crackdown On Fake Reviews: What You Need To Know

Even though I buy the majority of my merchandise locally, I'm not going to lie, I do purchase some merchandise online.

Depending on the item, I do look at reviewers of the product. Early on, I weighed heavily on the reviews to gauge whether or not I would purchase said product. Usually, these items would be something that is an investment, like a new laptop, home appliance, television, and even mobile DJ equipment.

Over the past few years though, I have not relied as much on product customer reviews since I don't know how real they are. Are these reviews coming from company employees, or maybe these reviewers who get paid, or receive free products to post a review? I don't know.

How about you? Do you rely on customer reviews before deciding to buy a product online? Fortunately, a new rule was put in place to try to keep these reviews as honest as possible.

In August, the Federal Trade Commission (FTC), passed a rule to combat fake reviews and testimonials. If a seller is found posting fake reviews, the FTC could prohibit the sale or purchase and seek civil penalties against the violators.

The rule bans reviews and testimonials that could be generated by AI, non-existent people, or persons who have no experience with the business or product or are not telling the truth about their experience.

Fake reviews not only waste people’s time and money but also pollute the marketplace and divert business away from honest competitors. By strengthening the FTC’s toolkit to fight deceptive advertising, the final rule will protect Americans from getting cheated, put businesses that unlawfully game the system on notice, and promote markets that are fair, honest, and competitive. -Federal Trade Commission Chair Lina M. Khan

According to the FTC, this rule prohibits:

Fake or False Consumer Reviews, Consumer Testimonials, and Celebrity Testimonials
Buying Positive or Negative Reviews
Insider Reviews and Consumer Testimonials
Company-Controlled Review Websites
Review Suppression
Misuse of Fake Social Media Indicators

For detailed rules on each point, visit the FTC press release. With this rule in place, hopefully consumers can feel confident that the reviews are legit when deciding whether or not to purchase products.