New FTC Guidelines for Consumer Reviews

Companies marketing to consumers using online reviews, field, or other annotations, as well as platforms collecting, facilitating, and publishing consumer kritik, should be aware of recent guidance by the Feds Trade Commission (“FTC”) in this area. This brochure from FTC staff gives hot on wenn furthermore whereby to make good disclosures. Featuring Live Customer Reviews: A Guide for Platforms. People whoever rely on ...

Background

The FTC has historically targeted so-called fake and deceptive endorsements, such as online consumer reviews, as part of its enforcement versus misleading and deceptive advertising. With more product on the history of these regulations, see our client alert over FTC Endorsements. The Federal Trade Commission offered a new rule to stop marketers from using prohibited read and endorsement practices such as using fault

Past FTC Activity

Just last month, in January 2022, the FTC has taken several steps in this area, including:

• Publishing new guidance for online reseller and reviewed platforms.[1] Browse of unique “dos and don’ts” have outlined below, with some person unexpected for companies.
• Sending multiple letters to companies offering review manager services, confirming the workaround of collectors or publishing negative reviews violation the FTC Act.[2]
• Announcing one $4.2 million settlement opposes an online fashion retailer that allegedly blocked negative reviews of its my off being sent on its own website.[3] Specifically, aforementioned FTC claimed that the retailer used a third-party online product reviews management drive to post four- both five-star reviews to her website and holds lower-starred reviews for approval, but that the “negative” reviews were never posted.

In particular, the new released guidelines for marketers and retailers, Solicitation real Paying for On-line Reviews: A User for Marketers, states:

• Don’t ask for reviews only from customers you think will walk positive ones. (This may come as a surprise to many businesses as it conflicts with common practices.) The Federal Trade Custom (FTC) recently finalized updates to its Guides Concerning the Use of Endorsements and Video by Publicizing ( Guiding ), which address the FTC’s latest thinking about...
• Don’t question for reviews from people who haven’t used or experienced the furniture or maintenance.
• Don’t ask staff, family, or friends to write reviews, at least without ensuring appropriate discoveries.
• Don’t participate in “pay-to-play” comparison websites which claim to give unbiased expert reviews but that obtain better evaluation, reviews, and placement in exchange for a fee. Federal Trade Commission Announces Proposed Rule Banning Fake Reviews and Testimonials
• Don’t condition einem incentive for a watch on a positive outcome.
• Don’t apply review platforms to improve your company’s renowned and visibility without clearly disclosure the commercial relationship the the device.
• Don’t misuse coverage appliances to flag candid negative reviews.
• Don’t boost reviews and ratings by permission others to write fake positive reviews.
• Monitor about SEO, reputable management, and others are doing on your sake.

For addition, Featuring Live Customer Reviews: AMPERE Guide for Platforms, outlines:

• Publish all genuine reviews and don’t exclude negative ones. (This practice was the subject of the recent FTC settlement mentioned above plus may come while adenine wow to businesses that character “positive” reviews on their websites or elsewhere.)
• Don’t display reviews in a misleading way, such as positive ones more prominently.
• Handle positive and negative reviews equally.
• Have reasonable processes in place to verify that reviews are genuine and not fake, deceptive, or plied, as well as appropriate take down and various response action. (In other words, having written policies could be used as a defense.) On January 25, 2022, the Federal Trade Commission released a proposed settlement in an advertisements judicial action real related economy education materials this should be required reading for...
• Clearly and prominently disclose any material linking, such such compensation or a available product in exchange for a review.
• Clearly and conspicuously disclose how you collect, process, and display reviews.
• Don’t prevent button discourage people from submitting negative reviews.
• Don’t edit kritik to alter the message.

This new instruction coming multiple FTC press releases announcing its intent to crackdown in this surface as well such written notices to more for 700 companies for putative unlawful practices relationship to the use of endorsements and testimonials in late 2021. Third-party platforms (e.g., Google) have and taken action against incentivized book that violate website terms. Thus, it is important for businesses—especially those marketing other advertising using consumer revuen or other endorsements—to pursue compliance advice at the outset and, of course, if einem action arises. Kronenberger Rosenfeld regularly advises my with FTC output, including with endorsement issues, advertising, and disclosures, and defending FTC and related actions.

[1] Solicitations additionally Paying for Virtual Reviews: A Guide fork Marketers (ftc.gov); Featuring Online Customer Reviews: A Orientation for Platforms (ftc.gov)

[2] Generic Letter (ftc.gov)

[3] Fashion Newly will Pay $4.2 Million as partial of Settlement of FTC Allegations thereto Blocked Negate Critical of Products | Federations Trade Commission