If you are tired of not knowing which reviews to trust on the internet, there might be some light at the end of the tunnel. The Federal Trade Commission (FTC) has proposed a new rule that aims to penalize companies for engaging in dishonest review practices. Under this rule, businesses could face fines of up to $50,000 each time a customer sees a fake review.
Fake reviews come in various forms, and the proposed rule targets several disingenuous review practices. For instance, it seeks to crack down on one-line reviews on platforms like Amazon that offer vague praise without providing any specific details. The rule not only punishes the companies that use fake reviews but also the brokers that facilitate their creation. This includes companies that buy or sell fake reviews, as well as those involved in the buying or selling of fake followers or views on social media.
The proposed rule also includes a ban on “insider” reviews and testimonials, which refers to companies posting reviews from managers, employees, or their relatives without proper disclosure. It also addresses “review hijacking,” a deceptive practice involving the repurposing of reviews from other products. The FTC has taken action against this practice for the first time this year.
The FTC’s crackdown on fake reviews gained attention after it fined The Bountiful Company, the maker of Nature’s Bounty supplements, $600,000 for exploiting Amazon’s product variation feature. The company grouped unrelated products together in a single listing to boost the reviews of lower-rated items using the ratings from higher-rated items. The proposed rule seeks to prevent such manipulations.
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In addition to fake reviews, the FTC also wants to address other misleading practices. It aims to crack down on company-controlled review websites that claim to provide independent opinions but actually recommend their own products. The rule would also penalize companies attempting to suppress negative reviews through intimidation or other means.
Online platforms like Amazon, Facebook, Google, and Yelp have made efforts to combat fake reviews in recent years. However, with the rise of generative artificial intelligence (AI), the problem is expected to worsen and become more challenging to control. The FTC recognizes this, stating that “the widespread emergence of AI chatbots is likely to make it easier for bad actors to write fake reviews.”
AI-generated views are already surfacing on the internet. A simple Google search for “as an AI language model” reveals a significant amount of AI-generated junk. While these disclosures are often harmless, they can also appear within spammy content and fake reviews.
According to Samuel Levine, the director of the Bureau of Consumer Protection at the FTC, the proposed rule on fake reviews demonstrates the agency’s commitment to combating deceptive advertising in the digital age. The rule aims to trigger civil penalties for violators and level the playing field for honest companies.
However, the implementation and enforcement of the rule remain unclear. The FTC has voted to approve the proposal but is currently soliciting public comments for further review. The hope is that the rule will discourage at least some of the low-effort fake reviews, or perhaps inspire their creators to improve their techniques. After all, if a fake review is going to be read, it should at least be convincing and well-written.
In conclusion, the FTC’s proposed rule against fake reviews aims to hold companies accountable for engaging in disingenuous practices. From one-line vague reviews to review hijacking, the rule targets various types of fake feedback. With the increasing prevalence of AI, the challenge of tackling fake reviews has become more complex. While the proposed rule is a step in the right direction, its effectiveness in curbing the proliferation of fake reviews and ensuring fair competition will depend on its implementation and enforcement.
