The FTC just fired a shot across the bow.
What does this mean?
It means the FTC may be getting ready to implement new civil penalties - up to $43,792 per violation - if a business is found using fake positive reviews.
“Fake reviews and other forms of deceptive endorsements cheat consumers and undercut honest businesses. Advertisers will pay a price if they engage in these deceptive practices.” Samuel Levine, Director of the FTC’s Bureau of Consumer Protection.
Do your brand(s) have fake positive reviews online? They may be at risk. Not only are your brands now at risk for civil penalties, but they are at risk at losing customers for life.
Studies show that 82% of consumers would never use a brand again if they found they had fake positive reviews. Ouch.
Yes, back in June, FTC Economist Devesh Raval requested 85,000 Transparency Reports.
here's a link to the press release.
An economist from the FTC requested 85,000 Transparency reports from us. They have the same access to fake review data as you do.
If you manage a brand with fake reviews, you need to get them removed. ASAP.
Are you looking for an industry expert to speak about this? Reach out to [email protected]