In today’s Tech News Tuesday episode, we’re talking about the Federal Trade Commission’s new rules on online reviews. If you rely on online reviews to promote your business, you’ll want to pay close attention to these changes.
The FTC is Cracking Down on Fake Reviews
The FTC has just finalized new rules addressing fake online reviews, including those generated by AI. With a 5-0 vote, these rules were approved and will take effect mid-October. This is a big deal for businesses that depend on customer feedback for their reputation.
The new rules are pretty clear. They prohibit the buying and selling of fake consumer reviews, whether they’re written by people or AI. This means that companies can no longer pay for positive or negative reviews, or use testimonials from celebrities that weren’t actually given. And the penalties are serious—violations can result in fines of up to $50,000 per fake review.
The FTC prohibits the buying and selling of fake reviews — positive or negative.
The FTC is also targeting reviews that come from insiders within a company who don’t clearly disclose their affiliation. Plus, they’re cracking down on company-controlled review websites that claim to provide independent opinions but are actually owned by the businesses being reviewed.
Offering incentives in exchange for reviews is off-limits.
Offering incentives in exchange for reviews is off-limits if those incentives are tied to the sentiment of the review. So, offering a discount for a positive review? That’s a no-go under these new regulations.
Another practice the FTC is banning is intimidating customers to remove negative reviews. It’s clear that the FTC is serious about cleaning up the online marketplace and promoting honesty and transparency.
Adjusting Your Review Strategy
While these new rules are designed to protect consumers, they also mean businesses need to be more vigilant than ever. Your review strategy needs to be above board, and that includes encouraging legitimate, organic reviews from your customers.
Aim for a steady stream of genuine reviews.
Reviews are a big factor in your online presence. Your overall star rating, the number of reviews, and even the language used in those reviews can all impact your rankings. The key is to aim for a steady stream of genuine reviews.
Make it part of your process with every new customer so you get consistent reviews over time. You have to ask for reviews, because we don’t always think to leave a review for a great experience, but disgruntled customers usually do! And don’t forget to respond to every review, not just the negative ones. Acknowledging your fans and addressing any concerns shows that you care about your customers’ experiences. Make asking for and responding to reviews a regular part of your customer interaction.
So, the takeaway here is to stay on top of these new FTC rules. Make sure your review practices are compliant, and keep focusing on genuine customer engagement. If you’re following the rules, these changes shouldn’t worry you—but it’s always good to stay informed and proactive.
Do you prefer to listen in? Here’s our podcast:
Links in this episode: The FTC finalizes its rules clamping down on fake online reviews
The FTC’s fake review crackdown begins this fall
Making the Most of Your Google Business Profile
Local Business Content that Gets Noticed
