In a report published by the Center for Data Innovation, Morgan Stevens and Daniel Castro discuss the FTC's recent steps to combat fake reviews. The FTC, Stevens and Castro explain, has jurisdiction to bring actions against companies accused of manipulating their consumer reviews. In 2022, for example, the FTC settled with a company that censored negative reviews on its website. In addition, at the end of 2022, the FTC reported its intention to enact more stringent guidelines against review manipulation. Stevens and Castro provide several recommendations for the FTC and other policymakers to stop the rise of fake reviews, including enforcing stricter penalties and regularly updating the FTC's best practice guidelines for businesses and consumers. Some states have taken up the mantle to enact bills intended to protect consumers from trusting the verity of online reviews. A bill in Tennessee, for example, would have rendered the posting of fraudulent online reviews a violation of the state's Consumer Protection Act.
In a report published by the Center for Data Innovation, Morgan Stevens and Daniel Castro discuss the FTC's recent steps to combat fake reviews. The FTC, Stevens and Castro explain, has jurisdiction to bring actions against companies accused of manipulating their consumer reviews. In 2022, for example, the FTC settled with a company that censored negative reviews on its website. In addition, at the end of 2022, the FTC reported its intention to enact more stringent guidelines against review manipulation. Stevens and Castro provide several recommendations for the FTC and other policymakers to stop the rise of fake reviews, including enforcing stricter penalties and regularly updating the FTC's best practice guidelines for businesses and consumers. Some states have taken up the mantle to enact bills intended to protect consumers from trusting the verity of online reviews. A bill in Tennessee, for example, would have rendered the posting of fraudulent online reviews a violation of the state's Consumer Protection Act.
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Be wary of scene-setting: A study conducted by Cornell University found that truthful reviewers usually include concrete words relating to the product or service they purchased, whereas fake reviewers like to set the scene. They may talk about how "their husband" visited a specific hotel for a "vacation" or "business trip" instead of focusing on the actual hotel experience. This is another fake review red flag. "Not only is it a monetary toll, but it's also an emotional toll," Grevious explained. "Nobody likes to feel duped."
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