"When brands buy five-star praise or nudge customers only to gush, they're not just boosting ratings-they're rigging the market. Consumers get misled, honest competitors get smothered and digital "word of mouth" starts to smell like payola. That's why the Federal Trade Commission ( FTC) issued warnings to potential violators-a quiet shot across the bow for anyone still gaming the system. On Dec. 22, the bipartisan federal agency's Division of Advertising Practices sent warning letters to 10 companies, putting them on notice of potential violations, based on information reviewed by FTC staff, including consumer complaints."
""Fake or false consumer reviews are detrimental to consumers' ability to make accurate and informed choices about the products they are buying-something of particular importance during the holiday season," said Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection. "As consumers increasingly depend on online reviews, the FTC is committed to ensuring companies comply with this Rule." To note, the FTC isn't saying these companies have definitively broken the Consumer Review Rule-but the agency is making the stakes clear."
Brands that buy or incentivize five-star reviews distort online marketplaces and mislead consumers. The Federal Trade Commission sent warning letters on Dec. 22 to ten companies after reviewing consumer complaints and company-provided information. The letters remind companies of requirements under the Consumer Review Rule and warn that continued deception can lead to lawsuits, civil penalties of roughly $53,000 per violation, and other enforcement. The notices aim to prompt removal of fake reviews, level the competitive playing field, and protect consumers who increasingly rely on online reviews during peak shopping seasons. The Rule followed advance and proposed rulemaking in 2022–2023.
Read at Sourcing Journal
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