Current:Home > StocksThe FTC is targeting fake customer reviews in a bid to help real-world shoppers-VaTradeCoin
The FTC is targeting fake customer reviews in a bid to help real-world shoppers
lotradecoin versus kucoin exchange View Date:2024-12-26 10:55:28
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 visiting 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! (62652)
Related
- China's ruling Communist Party expels former chief of sports body
- Police investigating homicide after human remains found in freezer of Colorado home
- Overdraft fees could drop to as low as $3 under new Biden proposal
- Aide to Lloyd Austin asked ambulance to arrive quietly to defense secretary’s home, 911 call shows
- Google forges ahead with its next generation of AI technology while fending off a breakup threat
- Mike McCarthy will return as coach of the Dallas Cowboys after stunning wild-card loss
- Rape suspect accused of faking his death to avoid justice denies his identity
- Lionel Messi will travel with Inter Miami for El Salvador game. But how much will he play?
- I loved to hate pop music, until Chappell Roan dragged me back
- Hamas uses Israeli hostage Noa Argamani in propaganda videos to claim 2 other captives killed by IDF strikes
Ranking
- Stock market today: Asian shares advance, tracking rally on Wall Street
- US Justice Department to release report on halting police response to Uvalde school massacre
- Costco tests new scanners to crack down on membership sharing
- U.S. renews terrorist designation of Houthi rebels amid Red Sea attacks
- One Tech Tip: How to protect your communications through encryption
- Proposed Louisiana congressional map advances to the House with a second majority-Black district
- Biden administration finalizes a $1.1 billion aid package for California’s last nuclear power plant
- Golden State Warriors Assistant Coach Dejan Milojević Dead at 46
Recommendation
-
'Vanderpump Rules' star DJ James Kennedy arrested on domestic violence charges
-
How to create a budget for 2024: First, check out how you spent in 2023
-
Avalanche kills skier in Wyoming, 3rd such U.S. fatality in recent days: Not a normal year
-
Lake Erie's low water levels caused by blizzard reveal potential shipwreck
-
ParkMobile $32.8 million settlement: How to join class
-
Overdraft fees charged by banks would drop to as low as $3 under new Biden proposal
-
'Had to do underwater pics': Halle Bailey gives fans first look into private pregnancy
-
'It's close to my heart': KC Chiefs running back Clyde Edwards-Helaire in nursing school