Fake Reviews are DEAD - New Law Could Ruin Fake Reviewers Forever

Cleaning Up It’s officially illegal to publish fake, AI-generated product reviews. Sweeping changes to Federal Trade Commission (FTC) guidelines aimed at cleaning up the polluted, confusing world of online product reviews went into effect on Monday, meaning that the federal agency is now allowed to levy civil penalties against bad actors who knowingly post product reviews written by people who don’t exist or have never used the product.

The updated guideline announced by the FTC marks a significant crackdown on the widespread issue of fake reviews online. It’s a move welcomed by many legitimate businesses, as well as online shoppers who have grown increasingly skeptical about the authenticity of reviews on websites like Amazon, Yelp, and Google.

The new guidelines specifically target reviewers who create and post fake reviews of products or services they have never used, as well as the companies that pay for or knowingly post such reviews. Bad actors who breach the guidelines could face civil penalties.

The updated rule is the latest in a series of efforts by regulatory bodies to combat the scourge of fake reviews on the internet. According to a recent study, approximately one-third of online reviews are fake, with companies spending an estimated “Billions of Dollars” on paid reviews each year.

In recent years, fake reviews have been on the rise, mainly driven by the increasing sophistication of AI technology that enables bad actors to generate fake reviews that are much more convincing than in the past. Hence, the updated guidelines aim to arm regulatory bodies with the necessary tools to detect and prevent such fake reviews.

Undoubtedly, there will continue to be individuals who will try and find ways around these rules. However, the new regulations mark a significant step towards creating fairer and more transparent online marketplaces. Under the updated rules, companies will be required to provide more detailed information about reviews on their sites, so you can see what reviews have been verified as coming from a genuine customer, or which ones are based on free products given to the reviewers.

At the same time, website operators will also need to provide clearer information about how reviews are collected, as well as any incentives offered to customers to encourage them to write reviews.

The new rule updates are especially relevant today, given the rising sophistication of fake review software. Reviews are a key online shopping factor that significantly influences purchasing decisions. According to the 2020 Consumer Reviews Survey by PowerReviews, almost all of 99.9% of Millennials and Gen Zers consider ratings and reviews when making a purchase online, while 97% of Baby Boomers also reported reading reviews before making a decision.

While fake reviews will challenges to continue, these new rules send a clear message: this conduct has got to stop. That applies to businesses big and small and to all of us, and in a fair and competitive market, honest reviews are key to a thriving and healthy online marketplace.