Federal regulators are looking to crack down on fake reviews and other deceptive internet practices in a new proposed rule.
Social media companies are once again under scrutiny, this time in France as the country’s president blames TikTok, Snapchat and other platforms for helping fuel widespread riots over the fatal police shooting of a 17-year-old driver.
“Our proposed rule on fake reviews shows that we’re using all available means to attack deceptive advertising in the digital age,” 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.”
In Friday’s notice to proposed rulemaking, the FTC noted that it already considers fake reviews and other deceptive actions to be unlawful — but that the new bans “may increase deterrence against these practices,” allow for civil penalties and help get financial compensation to victims, the agency said.
Estimates about the portion of reviews online that are fake range from 4% to more than 30%, according to researchers at the University of Southern California, Los Angeles’ Anderson School of Management. According to 2021 numbers from the World Economic Forum and CHEQ, fake reviews impact some $152 billion in global spending each year.with online retailers — more companies say they are now taking deceptive online practices seriously.
Earlier this month, Google announced legal action against a “bad actor” who posted over 350 fraudulent Google Business profiles and tried to boost them with more than 14,000 fake reviews, the company said.The Associated Press is an independent global news organization dedicated to factual reporting. Founded in 1846, AP today remains the most trusted source of fast, accurate, unbiased news in all formats and the essential provider of the technology and services vital to the news business.
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