Recently, the Federal Trade Commission (FTC) has taken enforcement action against the online review platform Sitejabber, accusing the company of violating new regulations by fabricating product reviews. According to the FTC's allegations, Sitejabber inflated the number of merchant reviews by using feedback collected through point-of-sale (POS) surveys, thereby misleading consumers about the true nature of the products.
The FTC has pointed out that Sitejabber's practices are highly "deceptive." The company has been asking customers to rate and review their shopping experience before they have actually experienced any product or service. This not only distorts the true feedback from customers but also allows many merchants to display these reviews, which are not based on genuine consumer experiences, on their websites.
This action is one of the first enforcement measures taken by the FTC under the newly enacted anti-fake review rules. According to these rules, the FTC prohibits companies from creating or selling fake product reviews, including by offering incentives to encourage user feedback or by establishing fake review websites that appear independent but are actually owned by the product manufacturing companies.
Additionally, the FTC has demanded that Sitejabber immediately cease all related deceptive practices, particularly prohibiting it from continuing to mislead consumers in the presentation of reviews, making them believe that these reviews are based on real customer experiences. Sitejabber will also be prohibited from assisting other companies in engaging in false advertising when collecting, reviewing, or displaying reviews in the future.
The introduction of these new regulations aims to curb the growing problem of fake online reviews, especially on e-commerce platforms, where AI-generated reviews have become a focus of regulation. Although the FTC's action has achieved significant initial results, future regulatory policies may change with the inauguration of a new U.S. president, and the FTC's leadership may also face adjustments.
Key Points:
📌 The FTC accuses Sitejabber of misleading consumers and boosting merchant ratings through fake reviews.
📌 New anti-fake review rules came into effect last month, prohibiting various deceptive review practices.
📌 Future regulatory policies may change due to the new president's inauguration.