How many of you turn to the internet to help you decide which dentist to call, where to go for dinner, or even decide which car to buy? Maybe this won’t come as quite a shock to you considering how everyone is cynical these days, but some influencers and social media reviewers are not always honest. And some influencers and social media stars are not only paid to promote what they say are the good qualities of a product, they are also paid to knock the competition’s product.
The FTC says that 4% of reviews are fake
Fake reviews are those that hold themselves out as being independent of the company making or selling a product in an attempt to persuade consumers to buy the product. Instead, these reviews are posted by the company itself or someone working on behalf of the company. This would be considered a misleading advertisement and subject to a fine.
Review found on Google Maps. In 2021, Google removed 95 million reviews on Maps for violating its policies
The FTC issued a statement in which it said, “Companies that use deceptive endorsements and reviews inflict an injurious double whammy. They harm consumers with misleading tactics that subvert their choices at check-out. And they take business away from honest competitors that work hard to comply with the law.” The FTC says that 4% of reviews are fake although a third-party firm called Fakespot concluded two years ago that the number was higher 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 is repurposing a legit review or rating.
- 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 “fly-in-soup” stories.
- Selling fake social media indicators – likes, stars, follower counts, and so on.
One site that is known for offering crowd-sourced reviews is Yelp. The FTC documentation notes that Yelp supports civil penalties for “businesses and individuals who author, arrange
for or pay for deceptive reviews.” It also said that its own studies indicate that 83% of consumers trust online reviews about local businesses and 71% would no longer do business with a company that paid for fake online reviews. Yelp says that it uses a software system to help it detect fake reviews and it recently flagged 19% of reviews as “not recommended.”
The FTC says that it can’t police every social media platform
So the next time you decide on ordering a burger to be delivered from some no-name joint because of a five-star review on social media, you might want to make sure that you have some Imodium on hand.
