The Federal Trade Commission Monday sent warning letters to 10 companies for potentially violating the Consumer Review Rule.
The Consumer Review Rule, effective October 2024, prohibits the publication of fake or false consumer reviews, providing compensation or incentives for positive or negative reviews, operating a company-controlled review website, suppressing negative reviews, and using fake social media indicators.
The letter sent to the companies, which were not publicly identified, stated the FTC had reason to believe they had violated the Consumer Review Rule and advised them to “immediately cease and desist” the conduct. The FTC press release about the letters said non-formal determinations were based on consumer complaints and information provided by the companies.
“Fake or false consumer reviews are detrimental to consumers’ ability to make accurate and informed choices about the products they are buying – something of particular importance during the holiday season,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, in a press release. “As consumers increasingly depend on online reviews, the FTC is committed to ensuring companies comply with this Rule.”
Violation of the rule can result in federal lawsuits and penalties of up to $53,088 per occurrence.
