Federal Trade Commission Warns Businesses About Fake Reviews, Urges Consumers to Stay Vigilant

Businesses rely on reviews to build trust

(FTC) – The Federal Trade Commission is warning businesses about the growing problem of fake online reviews, emphasizing that deceptive practices can harm consumers and undermine honest companies. The warning was issued as part of the agency’s ongoing efforts to monitor the marketplace and enforce laws against unfair and misleading business conduct.

Online reviews have become a key factor in consumers’ everyday decisions, from hiring contractors and searching for apartments to purchasing products and services online.

Businesses also rely heavily on reviews to build trust and attract customers. However, the FTC says some companies distort this process by writing, buying, or paying for fake reviews, or by offering incentives in exchange for positive feedback only.

According to the agency, it recently sent warning letters to companies urging them to closely examine their online reviews and remove any deceptive or misleading statements.

The letters remind businesses that creating or posting fake reviews, as well as selectively rewarding favorable reviews, may lead to enforcement actions and financial penalties.

The FTC continues to encourage consumers to approach online reviews with caution. The agency advises people to consult a range of sources and to consider whether a website or its reviews are independent or sponsored.

Consumers are also urged to pay attention to recent reviews and to be wary of a sudden surge of reviews over a short period, which can sometimes indicate fraudulent activity.

When fake reviews are suspected, the FTC recommends reporting them directly to the platform where they appear, such as major online marketplaces and search services.

In addition, consumers are encouraged to report deceptive reviews to the FTC through its ReportFraud.ftc.gov website. When submitting a report, individuals should follow the path that best matches the product or service involved and include the term fake review in the comments if a specific option is not available.

The agency says these steps help protect consumers, promote fair competition, and ensure that online reviews remain a trustworthy tool for making informed decisions.

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