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Fake online reviews banned by feds. Will it help?

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Published  August 21, 2024 6:04pm CDT
Investigators
FOX 9

Fake review crackdown

The Federal Trade Commission approved a ban on posting fake online reviews, including ones generated by artificial intelligence. The rule aims to crack down on the deceptive practice that’s led to millions of misleading reviews online.

MINNEAPOLIS (FOX 9) - The Federal Trade Commission approved a ban on posting fake online reviews, including ones generated by artificial intelligence. The rule aims to crack down on the deceptive practice that’s led to millions of misleading reviews online. 

Who does it apply to? 

The new rule applies to people engaging in the black-market commerce of buying, selling and generating fake reviews online.

Earlier this year the FOX 9 Investigators spoke with one fake reviewer who claimed to be based in the United Arab Emirates. The anonymous reviewer said he could post 5,000 reviews in a day, including five-star reviews at the cost of $2 for each review. 

Who it doesn’t apply to 

Companies like Google, Facebook and others are not held responsible when users publish fake reviews on their platforms.

"I believe the new rule is a step in the right direction," said Kay Dean, who runs consumer watchdog group Fake Review Watch. "However, it falls short in one key aspect and that it does not apply to third-party review platforms who, in my opinion, are the architects of the whole corrupt system." 

On its website, Google says the company removed or blocked 170 million reviews in 2023 for violating the company's policies. 

What does the new rule ban? 

  • Fake or False Consumer Reviews
  • Buying Positive or Negative Reviews
  • Insider Reviews and Consumer Testimonials
  • Company Controlled Review Websites
  • Review Suppression
  • Misuse of Fake Social Media Indicators, including followers generated by a bot

Who backed the ban? 

Minnesota Attorney General Keith Ellison joined two dozen state attorneys general to support the FTC’s new rule. 

"Lies undermine fair markets," Ellison told the FOX 9 Investigators. "People can’t make good consumer choices if they’re having to rely on lies." 

Holding offenders accountable

The new FTC rule is expected to take effect in October and offenders face the possibility of tens of thousands of dollars in fines. 

However, as the proliferation of the fake review market continues to rise, Dean wonders how regulators will be able to keep up. 

"I think it has gotten worse," Dean said. "And with the introduction of A.I., it will just explode." 

Investigators