Current:Home > InvestSafeX Pro:FTC wants to ban fake product reviews, warning that AI could make things worse -Ascend Finance Compass
SafeX Pro:FTC wants to ban fake product reviews, warning that AI could make things worse
Oliver James Montgomery View
Date:2025-04-11 11:00:46
If the Federal Trade Commission has its way,SafeX Pro businesses could soon be fined a hefty sum for hosting or promoting fake product reviews online.
Faux five-star and rave reviews of less-than-stellar consumer goods can boost businesses' profits while deceiving consumers, according to the agency, which has proposed a rule to crack down on companies that buy, sell or promote phony user ratings of their products. If the rule is finalized, violators would be subject to penalties of up to $50,000 per infraction, depending on the case.
"The FTC has seen a massive increase in online reviews in the past few years," Serena Viswanathan, associate director of the FTC's division of ad practices, told CBS News. "We're all using them now to make decisions on whether to buy a product, where to stay on vacation. But unfortunately, with the rise in online reviews we have seen that bad actors can manipulate or fake reviews to deceive consumers for their own benefit."
New types of artificial intelligence tools, which can write human-sounding, but bogus, product reviews, also threaten to compound the problem by enabling bad actors to crank out far more fake reviews, according to the consumer watchdog.
Deceptive reviews hurt consumers by making it hard to obtain factual information about products, regulators say.
"The FTC's proposed rule would make it crystal clear that it's illegal to do things like write or sell fake reviews from people who don't exist or never used the product, or to buy positive reviews or even buy negative reviews about your competitors," Viswanathan said.
Boosting "honest companies"
A steady stream of phony product reviews can boost an item's visibility among consumers while obscuring products from more trustworthy companies, according to experts.
"Our proposed rule on fake reviews shows that we're using all available means to attack deceptive advertising in the digital age," said Samuel Levine, Director of the FTC's Bureau of Consumer Protection said in a statement. "The rule would trigger civil penalties for violators and should help level the playing field for honest companies."
According to a U.S. PIRG estimate, between 30% and 40% of online reviews are "concocted or are in some way not genuine." Bogus reviews surged during the pandemic when U.S. shoppers made the bulk of their purchases over the internet versus in stores, the consumer advocacy group noted.
Nearly 90% of online shoppers rely on reviews to guide their purchase decisions, according to PIRG.
"Not only does this harm consumers who are trying to make informed buying decisions, fake reviews also hurt honest businesses who make sure their online reviews are genuine. When people lose confidence in reviews, legitimate positive reviews don't mean as much. So consumers lose. Honest businesses lose. Dishonest businesses win," PIRG said in a report.
Stopping hijackers
The FTC's proposed rule would make selling and buying fake reviews illegal, while also cracking down on a practice known as "review hijacking." This consists of repurposing a genuine consumer review written for one product so that it appears to pertain to a substantially different product.
Also under the proposed enforcement, company insiders cannot review their own products, and businesses cannot bribe people to leave positive reviews or threaten them if they leave negative reviews. Companies would be permitted to offer customers gift cards for leaving a review, so long as the business doesn't dictate what people say about a product.
"We really think that the possibility of significant financial penalties under a rule should make some of these bad actors think twice about writing fake reviews and selling fake reviews," Viswanathan said.
veryGood! (82)
Related
- Travis Hunter, the 2
- Did America get 'ripped off'? UFO disclosure bill derided for lack of transparency.
- Is black pepper good for you? Try it as a substitute.
- G League player and girlfriend are arrested in killing of woman found dead near Las Vegas
- In ‘Nickel Boys,’ striving for a new way to see
- Militants with ties to the Islamic State group kill 10 people in Uganda’s western district
- Remains found in LA-area strip mall dumpster identified as scion's alleged murder victim
- Planned Parenthood of Wisconsin to resume abortions at its Sheboygan clinic within days
- Retirement planning: 3 crucial moves everyone should make before 2025
- DK Metcalf's sign language touchdown celebrations bringing Swift-like awareness to ASL
Ranking
- South Korean president's party divided over defiant martial law speech
- What if George Bailey wasn't the hero of 'It's a Wonderful Life'? In defense of a new ending.
- Hong Kong court begins Day 2 of activist publisher Jimmy Lai’s trial
- Colorado releases 5 wolves in reintroduction program approved by voters
- Pregnant Kylie Kelce Shares Hilarious Question Her Daughter Asked Jason Kelce Amid Rising Fame
- Israel finds large tunnel near Gaza border close to major crossing
- A boycott call and security concerns mar Iraq’s first provincial elections in a decade
- Somber, joyful, magical: Some of the most compelling AP religion photos of 2023
Recommendation
The FTC says 'gamified' online job scams by WhatsApp and text on the rise. What to know.
25 Secrets About Home Alone That Will Leave You Thirsty for More
Ja Morant lawsuit provides glimpse into his youth, family and a contentious pickup game
Parenting advice YouTuber Ruby Franke pleads guilty to 4 counts of child abuse
Warm inflation data keep S&P 500, Dow, Nasdaq under wraps before Fed meeting next week
The best movies and TV of 2023, picked for you by NPR critics
Russell Brand questioned by London police over 6 more sexual offense claims, UK media say
Google to pay $700 million in case over whether its app store is an illegal monopoly