Big News on Fake Reviews

On Wednesday, August 14th, the Federal Trade Commission voted unanimously to ban marketers from using fake reviews. Presumably, this was targeted at those using generative AI to boost their social presence through fake (but potentially realistic sounding?) reviews, but the ban is more sweeping, as other false reviews will also be banned. 

This should come as a welcome relief to consumers, who have, as of late, had to sweep through hundreds of reviews (if not more) to find credible information on the products they intended to buy.

Why Fake Reviews Suck, Honestly 

To be frank I don’t even really know why I need to spell this out, but fake reviews just make buying anything online that much less pleasant. 

I can only speak for myself, and I’m not a gambling man, but I can’t feel as though I’m the only person out there that would buy in person all the time if I had my druthers. I only buy online whenever whatever it is that I want can’t be easily had in-store. 

And, on that note, fake reviews have made life as an eCommerce a pain. At least 95% of consumers read reviews before buying, and with all the fake, AI-generated (and intentionally misleading) reviews out there, it’s nearly impossible to winnow the wheat from the chaff. 

But that’s not the only development to note here. 

But Wait, There’s More 

Not only did the FTC drop the hammer on AI generated fake reviews (and regular fake reviews). It also put the kibosh on another common practice: companies will now no longer be able to pay for reviews, either positive or negative, to influence their impression online. 

On top of that, businesses, or the marketers they employ, will no longer be able to pad their follower counts on their social media platforms with bots. 

These developments come as a welcome relief to consumers that are weary of slogging through reviews trying to get to reputable information before buying products online. 

What This Means for eCommerce Businesses 

While this is potentially positive news for consumers, this development has pretty big implications for eCommerce businesses, especially those that outsource their marketing. 

If your business has ever paid for false reviews in the past, it’s time to review your practices to keep compliant with the new regulations. One false review might bring down a minor fine, but thousands upon thousands of false or misleading reviews can quickly accumulate and result in serious punitive penalties. 

Now, I’ve written at length on the issues of using AI in digital marketing before, but this is more serious. Previously, my caution was for businesses not to run afoul of SEO best practices. Now it is a warning that by using generative AI to create reviews, or by paying consumers to leave reviews as though they are disinterested third parties, your business will be breaking the law. 

For more information on the FTC’s ruling, please visit their website. 

Anyway, this ruling should not be seen as all doom and gloom for businesses. It’s good for consumers, and what’s good for them is good for the businesses that support them. It does mean businesses will now need to put in a little more legwork into reputation management, but you know what they say, 

“What we obtain too cheap, we esteem too lightly. It is dearness only that gives everything its value.” 

Well, Thomas Paine said that, and I agree. Nothing worth having comes easy.