Do you rely on the internet for recommendations on dentists, restaurants, or even cars? It’s not surprising, given the skepticism prevalent nowadays. However, it’s important to note that not all influencers and social media reviewers are honest. In fact, some of them are paid to promote certain products and disparage the competition.
The FTC estimates that 4% of reviews are fake.
Fake reviews are those that pretend to be independent of the companies selling the products, with the intention of persuading consumers to make a purchase. However, these reviews are often posted by the companies themselves or their affiliates. Such deceptive advertising is subject to fines.
Review found on Google Maps. In 2021, Google removed 95 million reviews on Maps for violating its policies
The FTC emphasizes that deceptive endorsements and reviews harm consumers by misleading them during their decision-making process and also harm honest competitors who follow the rules. Although the FTC estimates that 4% of reviews are fake, a third-party firm called Fakespot found higher numbers for Walmart.com (37.6%) and Amazon.com (27.6%).
The proposed rule changes include:
- Selling or obtaining fake consumer reviews and testimonials.
- Review hijacking, which involves repurposing legitimate reviews or ratings.
- Buying positive or negative reviews.
- Undisclosed insider reviews – no more “it’s great!” from chief marketing officers.
- Company-controlled review websites.
- Illegal review suppression – threatening reviewers or hiding negative experiences.
- Selling fake social media indicators – likes, stars, follower counts, etc.
Yelp is a well-known platform that relies on crowd-sourced reviews. The FTC supports Yelp’s efforts to penalize businesses and individuals involved in deceptive review practices. According to Yelp, 83% of consumers trust online reviews about local businesses, and 71% would avoid a company that paid for fake reviews. Yelp uses software to detect fake reviews and has labeled 19% of reviews as “not recommended.”
The FTC acknowledges the limitations of policing every social media platform.
So, the next time you rely on a five-star review on social media to order a burger from an unknown establishment, it might be wise to keep some Imodium on hand.
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Alex Smith is a writer and editor with over 10 years of experience. He has written extensively on a variety of topics, including technology, business, and personal finance. His work has been published in a number of magazines and newspapers, and he is also the author of two books. Alex is passionate about helping people learn and grow, and he believes that writing is a powerful tool for communication and understanding.
