US regulators target bogus Online reviews
Associated Press
WASHINGTON - Federal regulators are looking to crack down on fake reviews and other deceptive Internet practices.
....
The Federal Trade Commission proposed a new rule Friday [06/30/2023] that would ban paying for reviews, suppressing honest reviews, selling fake social media engagement and more. Businesses would also be prohibited form running copay-controlled websites that claim to be independent, and other deceptive practices like "review hijacking," which makes reviews for one product appear like they were written for significantly different ones.
..... If the proposed rule is approved, following a 60-day public comment period, violators could face hefty penalties.
..... "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 violations and should help level the playing field for honest companies."
..... IN Friday's [06/30/2023] notice to proposed rule-making, the FTC noted that it already considers fake revise and other deceptive actions to be unlawful - but that the new bans "may increase deterrence against these practices," allow for civil penalties and help get financial compensation to victims, the agency said.
..... Estimates about the portion of reviews Online that are fake range from 4% to more than 30%, according to researchers at the University of Southern California, Los Angeles' Anderson School of Management. According to 2021 members from the World Economic Forum and CHEO, fake reviews impact some $152 billion in global spending each year.
..... In addition to FTC efforts to tackle fake reviews in the past - which include multi-million-dollar settlements - more companies say they are now taking deceptive Online practices seriously. Last moth, [06/2023] Google announced legal action against a "bad actor" who posted over 350 fraudulent Google business profiles and tried to boost them with more than 14,000 fake reviews the company said.