FTC bans fake online reviews, but is it game over?
Houston - A federal rule banning fake online reviews is now in effect. The Federal Trade Commission banned the sale or purchase of online reviews, but some consumer advocates say it doesn't go far enough to stop the problem.
The U.S. Public Interest Research Group found between 30 percent to 40 percent of online reviews for businesses, restaurants, and services are fake.
We've been reporting on the widespread problem of fake reviews, which can often be generated by paid fake review rings, bots, or artificial intelligence, aimed at boosting sales for a business, or sometimes hurting a competitor.
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You'll remember Google removed more than 500 reviews for Glo Dental Group after the organization Fake Review Watch reported finding that many were suspicious.
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A Glo Dental representative said they don't know who posted the reviews, but the company reports fakes they find to Google to be removed.
The Federal Trade Commission can now fine a business or person up to $51,000 for posting, buying, or selling fake reviews. The move is aimed at deterring bad actors from continuing the practice.
But some consumer watchdogs, like Kay Dean of Fake Review Watch, say the ban and fine don't go far enough.
"I think it's a good first step. However, the rule fails dramatically in one key aspect, in that it does not apply to third party review platforms. For example, review platforms such as Google, Yelp and Facebook are off the hook," said Dean.
Dean says that the platforms should be required to do more to stop fake reviews.
However, a federal rule protects platforms from content that people post, so they were not included in the FTC ban.
Google says that it removed 170 million policy-violating reviews in 2023, using, "automated systems, trained operators, and reports from the community," and has taken malicious actors to court.
Some platforms, such as Yelp, post a 90-day alert on a business' page when reviews have to be removed. Dean believes such alerts should be permanent so that consumers will know that reviews were removed.