TL;DR
- Any business shouldn’t engage in the procurement or dissemination of false reviews that are not from someone who has used the concerned services.
- The new rules also prohibit a company insider from writing reviews without stating their “material connection” with the business.
- The rules bar companies from threatening customers to remove negative reviews.
To tackle the rise of fake customer reviews on e-commerce platforms, the Federal Trade Commission of the United States has passed legislation against creating, buying, or selling false reviews. The decision would not only make online reviews more trustworthy for the end consumer, but it would also help brands and businesses protect their reputation.
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Creation Or Distribution Of Fake Reviews Is Banned
To counter the issue of false reviews that are curated by businesses for promoting their product, the Federal Trade Commission has put forward some really solid ground rules. First and foremost, the creation or distribution of fake reviews is now illegal or banned, whether the reviews are generated using an AI chatbot or written by humans.
Brands Are Prohibited From Incentiving Reviews
Any business shouldn’t engage in the procurement or dissemination of false reviews that are either not from someone who had used the concerned services or are misrepresenting the experience “when the business knew or should have known that the reviews or testimonials were fake or false.” Further, businesses and brands shouldn’t engage in buying reviews by providing incentives, either positive or negative. The rule applies to both direct and indirect incentivizing.
The new rules also prohibit a company insider from writing reviews without stating their “material connection” with the business. Further, executives of the business aren’t allowed to collect reviews from their immediate relatives, employees, or agents, as they could be easily influenced.
Businesses Are Now Prohibited From Intimidating Customers For Removal Of Negative Review
To increase transparency among buyers, the false review rules also restrict businesses and companies from misleading customers by publishing reviews and opinions on a website or entity they control. To curb the cases of legal threats of defamation or other forms of intimidation, the rules also prohibit companies from using these methods to remove negative reviews. Further, businesses are barred from hiding the total number of negative reviews for their products or services.
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Customers Facing An Issue Can Report At The Given Website
Last but not least, the Federal Trade Commission has also prohibited anyone from buying or selling fake social media followers or views. Moreover, the rules in place sound very effective and should be able to reduce the number of fake/paid/manipulated reviews on marketplaces. Consumers are encouraged to report violations of the rules put forward at “https://reportfraud.ftc.gov/.“
Violations of these rules would result in civil penalties, but their effectiveness remains to be seen. There are a few challenges in the path. First, more and more people need to be aware of the rules to bring a significant change. Second, the onus is on the customers to report the review on the website above.
The Indian Government Should Also Formulate Such Rules
While the ruling would benefit the customers in the United States, we would want the Indian government to pass similar legislation in the country. As the popularity of e-commerce platforms rises, so do the attempts to manipulate the review section into selling a product.
Nowadays, businesses are using AI-infused tech to create and distribute fake reviews, which are published on the platform through different accounts. The goal is simple: influence the customer who comes to the review section into buying the product.
Further, fake reviews also help increase a product’s average rating, which is often a key parameter in a customer’s decision-making process. If the government decides to impose similar rules in India, it could really help the customers in the country, especially those in tier two or tier three cities.
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