On October 20, 2022, the FTC published an Advance Notice of Proposed Rulemaking (ANPR) that seeks public comment on potential harms stemming from deceptive or unfair review and endorsement practices and whether a rule would help consumers and level the playing field for honest marketers. According to the FTC’s press release, the agency is exploring a potential rule to combat deceptive or unfair review and endorsement practices, such as using fake reviews, suppressing negative reviews, and paying for positive reviews.
The rapid growth of online marketplaces and platforms has made it easier than ever for some companies to create and use fake reviews or endorsements to drive sales. These deceptive and manipulated reviews and endorsements can cause harm to the many consumers that rely on reviews when shopping for a product. Thus, the FTC seeks comment on the costs and benefits of a potential rule to combat deceptive and unfair practices related to deceptive reviews and endorsements such as fake reviews, review reuse fraud, paid reviews, insider reviews, review suppression, fake review sites, and buying followers.
The public will have 60 days to submit their comments once the notice is published in the Federal Register.
Read the FTC’s announcement here.
A copy of the ANPR can be found here.