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A federal rule banning fake online reviews is now in effect. The Federal Trade Commission issued the rule in August banning the sale or purchase of online reviews. “Fake reviews not only waste ...
With the rise of e-commerce, influencer marketing and generative AI, more advertisers are turning to automated chatbots like ChatGPT to quickly generate user reviews for products sold on online ...
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Businesses that knowingly buy fake reviews, procure them from company insiders or disseminate fake reviews will be penalized. It also prohibits businesses from using “unfounded or groundless legal threats, physical threats, intimidation, or certain false public accusations.” People can report violations at https://reportfraud.ftc.gov.
Businesses that try to artificially boost their star ratings will also face consequences. Warning alerts will be slapped on their Google profiles, and new reviews will not be allowed. And if they repeatedly engage in fake review activity, all their reviews for the past six months or more will be deleted, the CMA said.
But fake reviews and testimonials have been a persistent problem for small businesses, many of whom rely on recommendations for business. Fake reviews can make it harder for people to trust what they read online and ultimately hurt businesses. In addition, small businesses can find themselves targeted by bad actors who leave negative reviews.
Paid online commentators in China are purportedly paid 50 cents for each online post that is not removed by moderators, [25] leading to the nickname of the "50-cent party". [20] The New York Times reported that a business selling fake online book reviews charged $999 for 50 reviews and made $28,000 a month shortly after opening. [18]
Teresa Murray, a consumer advocate at U.S. Public Interest Research Group, said the rule was an important protection for online shoppers, 90% of whom base purchase decisions in part on reviews.