Summary
The FTC has recently proposed a new rule that would penalize companies who engage in the practice of soliciting or purchasing fake reviews. While the fact that the FTC is taking on this practice is good, it remains to be seen whether or not this will actually stop or reduce the number of fake reviews we see online.
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If you’ve shopped online, you’ve likely ventured into the product reviews. And it probably didn’t take you long to realize that not all reviews are actually real. However, the Federal Trade Commission is now proposing a rule that would crack down on these fake reviews.
For Personal Tech Media, this is Two Minute Tech. I’m Jim Herman.
The FTC’s proposed rule would formally implement penalties for those who engage in soliciting or leaving fake reviews. This would include using fake profiles, generating reviews with AI, or reviews left without purchasing a product.
Employees of companies that make or sell products would also be banned from leaving reviews without disclosing their relationship. And companies would not be able to pretend their review of a product is independent or threaten those who leave negative reviews.
The rule is currently open for comment from the public. Following the 60-day public comment period, the FTC will review the comments it’s received, make any adjustments it feels are necessary, and then put the adjusted proposal to a final vote.
There’s no denying that fake reviews are a problem, and I’m glad the FTC is trying to do something about it. However, this proposal seems destined for failure.
First, while it’s easy to tell a review is likely fake, it’s much more difficult to prove that it’s fake and prove that the company was behind it. And second, this rule will only apply to US-based companies. Businesses outside the US won’t be penalized. So while this rule may make some progress in stopping the practice of fake reviews, it certainly won’t eliminate the entire problem.