FTC targeting fake reviews in a bid to help real-world shoppers

People shop in The Galleria mall during Black Friday on November 26, 2021 in Houston, Texas.

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Those of us who shop online may scan customer reviews to get a better sense of products we can’t judge for ourselves at a brick-and-mortar store. We may check out online testimonials before booking a haircut or visiting a new restaurant.

But what happens if some of those reviews can’t be trusted?

The Federal Trade Commission announced Friday that it’s proposing new measures to crack down on fake reviews and other practices used to mislead consumers trying to educate themselves about a potential purchase.

The commission published a proposed rule that would prohibit companies from writing or selling fake reviews, buying positive reviews, illegally suppressing negative reviews and more.

“Our proposed rule on fake reviews shows that we’re using all available means to attack deceptive advertising in the digital age,” Samuel Levine, director of the FTC’s Bureau of Consumer Protection, said in a statement.

“The rule would trigger civil penalties for violators and should help level the playing field for honest companies,” Levine added.

Research shows people overwhelmingly consult online reviews before opening their wallet, but humans are also bad at telling which consumer reviews hold water and which are full of hot air.

That’s potentially worrisome given that nearly one in every three reviews is fake, according to one estimate.

In arguing for the proposal, the FTC cited enforcement actions it had taken against companies that manipulated reviews of their products.

Last year, for example, the commission forced the online retailer Fashion Nova, LLC to pay $4.2 million to settle…