Federal Trade Commission Proposes Rule to Combat Deceptive Online Reviews

LAS VEGAS – Chris Hove’s pool, installed by Greencare, had a hidden secret beneath its surface. After experiencing poor service, Hove discovered that Greencare had been using fake positive reviews and suppressing negative feedback to boost their business.

Digital detective Kay Dean has been exposing this shady world on YouTube with a regular feature called “Fake Review Watch.” According to Dean, the online review world is unregulated and tech companies are not self-policing as they should be.

To combat this, the Federal Trade Commission is proposing a new rule that would prevent businesses from suppressing honest negative reviews, paying for positive reviews, and writing or selling fake reviews.

The rule would also prohibit review hijacking and require clear labeling of reviews from friends, family, employees, or business owners.

Greencare was found to be engaging in these deceptive practices on multiple platforms, including Yelp, Google, and Facebook. Since the investigation aired, Greencare has worked to remove fake reviews.

The FTC’s Notice of Proposed Rulemaking will be published soon and will include questions for public comment. Comments must be submitted within 60 days of publication.

Credits: KTNV