FTC seeks to ban fake reviews with new proposed rule

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In recent years, the FTC has fined or brought cases against companies believed to be suppressing honest reviews or soliciting fake reviews.

FTC Chair Lina Khan speaks during a Senate Commerce, Science and Transportation Committee confirmation hearing in Washington, D.C., April 21, 2021.a new rule that seeks to ban fake online reviews, marking its most aggressive step yet to thwart review fraud.

The proposed rule would prohibit companies from buying or selling fake reviews and suppressing negative reviews, as well as "review hijacking," which involves repurposing positive reviews from one item for use on other listings, and can make new or questionable products appear trustworthy. It also bars company executives or insiders from leaving reviews of their products or services without disclosing their relationships.

"The rule would trigger civil penalties for violators and should help level the playing field for honest companies," said Samuel Levine, director of the FTC's Bureau of Consumer Protection, in a statement.

Source: News Formal (newsformal.com)

 

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