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Fake online reviews are now banned by the FTC: How to spot a fake

By Daniel Miller
Published  October 22, 2024 1:01pm CDT
Consumer
FOX 9 Minneapolis-St. Paul

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.

A federal rule banning fake online reviews went into effect Monday.

In August, the Federal Trade Commission issued a rule prohibiting the sale or purchase of online reviews. Under the rule, the agency can also seek civil penalties against individuals who violate it. 

According to the AP, the rule bans reviews and testimonials credited to people who do not exist or are manufactured by artificial intelligence, individuals who do not have experience with the business or product/services or misrepresent their experience. 

The rule also bars companies from creating or selling reviews or testimonials. Businesses that knowingly buy fake reviews, earn them from company insiders or disseminate fake reviews will be penalized. It also discourages businesses from using "unfounded or groundless legal threats, physical threats, intimidation, or certain false public accusations."

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. 

How businesses use fake reviews

The flurry of five-star reviews and vaguely written comments seemed too good to be true. The same reviewers who recently praised a dental office in Minnetonka were also giving high marks to a locksmith in Florida and a restaurant in Australia.

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

How can I spot a fake review?

When determining if an online review is authentic or fake, the Federal Trade Commission informs consumers to check the source of the review.

The agency also offers these helpful tips on their website to keep in mind as well: 

  • Consumers should check how recent the reviews are and watch for a burst of reviews over a brief time. That can sometimes mean the reviews are fake.
  • The FTC notes that you should Monitor if the reviewer has written other reviews. If so, read those to get a better sense of how much to trust that reviewer. If it seems that the reviewer has created an account just to write one review for one product, that review may be fake.
  • You also should not assume that, just by looking, you can spot the difference between a real review and a fake one. Some reviews may look suspicious, and some may look real, but it can often be nearly impossible to tell for sure.
  • Remember that fake reviews are not always positive. Sometimes, a company might post fake negative reviews to harm a competitor.

Consumers can report violations at reportfraud.ftc.gov.