The Federal Trade Commission (FTC) has taken action against Sitejabber, an online review platform, accusing it of breaching new rules around fake reviews. The FTC's complaint claims that Sitejabber used misleading tactics to inflate review counts, allegedly deceiving consumers about the authenticity of these reviews. This marks one of the first cases under the FTC's newly implemented guidelines to crack down on fake reviews and ensure transparency in online consumer feedback.
How Sitejabber allegedly inflated reviews
According to the FTC, Sitejabber gathered responses from point-of-sale surveys, where customers were prompted to rate their shopping experience immediately after purchase, often before they'd even received the product or service. Sitejabber then added these ratings to clients' overall review counts. This process, the FTC argues, falsely implied that the feedback was based on actual product usage, potentially misleading consumers.
The platform reportedly offered its clients the option to display these prematurely collected ratings on their websites. This tool, provided by Sitejabber, allowed businesses to present feedback in a way that appeared to be based on real customer experiences. As a result, the FTC claims Sitejabber helped companies mislead their potential customers into thinking the reviews reflected real product or service interactions.
FTC's response and Sitejabber's restrictions
The FTC's new rules, effective as of last month, explicitly prohibit companies from fabricating or manipulating online reviews. Under these regulations, Sitejabber is now forbidden from “misrepresenting, or assisting anyone else in misrepresenting,” that a review is based on a genuine experience with a product or service. This order also bars Sitejabber from aiding other companies in any deceptive practices surrounding the reviews it collects or displays.
In a broader sense, the FTC's rules target practices like incentivising reviews, using artificial intelligence to generate fake feedback, and creating review sites that appear independent but are owned by the companies being reviewed. These guidelines respond to the rising concern over fake reviews prevalent across online marketplaces, including popular e-commerce sites like Amazon.
The impact of new anti-fake review regulations
The FTC's enforcement of these new rules against Sitejabber signals a firmer stance on review transparency, especially as fake and AI-generated reviews continue to flood the internet. With these regulations, the FTC aims to protect consumers from being misled by false endorsements and help them make informed purchasing decisions.
However, the future of these policies could depend on the upcoming US presidential administration. The FTC's current leadership, prioritising anti-deceptive review practices, may see changes if a new administration takes office. This could impact the direction and intensity of such enforcement, particularly as the online shopping and digital marketing landscape evolves rapidly.
This case underscores the FTC's commitment to tackling fake reviews and ensuring consumer trust in online marketplaces. As online reviews play a crucial role in purchasing decisions, these new regulations uphold transparency and help consumers differentiate genuine feedback from deceptive practices.
