FTC Proposes $50,000 Fines For Fake Online Reviews

The Washington Post reports:

Fake reviews are ruining the web. But there’s some new hope to fight them. The Federal Trade Commission on Friday proposed new rules to take aim at businesses that buy, sell and manipulate online reviews. If the rules are approved, they’ll carry a big stick: a fine of up to $50,000 for each fake review, for each time a consumer sees it.

That could add up fast. It’s the biggest step to date by the federal government to deter the insidious market for buying and selling fake reviews, though the FTC’s rules don’t do as much to hold big review sites like Yelp, Google, Tripadvisor and Amazon directly accountable.

The rules also forbid a few more shady tactics such as review “hijacking.” That’s when a merchant takes a product listing page filled with legitimate reviews and swaps in a different product that those customers never actually used.

Read the full article. Gift link here.

Analysis: The FTC has proposed new rules that clarify what is and isn’t a deceptive online review — and would give it the power to fine $50,000 for each fake. https://t.co/uutYRjEWx5

— The Washington Post (@washingtonpost) June 30, 2023