The FTC Cracks Down on Influencers and Fake Reviews
We are marketed to all day every day, whether we like it or not- whether we realize it or not!
Obviously it’s for the best if we DO realize it. Knowledge is power as they say, and if someone is trying to manipulate our feeble, consumer-based minds, it’s good for us to at least know the con is on. That way we can get our guard up, and do our due diligence, reading the reviews, as we do.
But it’s the internet, and things can get ruined there pretty quickly. Fake reviews. Lies. Shams and charlatans abounding. Amazon, Yelp, and the like know it’s a problem when reviews can’t be trusted, but there is only so much they can do. They can filter and remove flagged reviews, disable deceitful parties, and so on.
But for true punitive measures, it takes someone with some clout. Enter the Federal Trade Commission, once again in your corner.
So What’s Going On?
The FTC is seeking to enhance and update their Endorsement Guidelines, which were first enacted in 1980 and last amended in 2009. The guidelines supposed to provide guidance for businesses and individuals in order to keep endorsements or paid testimonials truthful.
“We’re updating the guides to crack down on fake reviews and other forms of misleading marketing, and we’re warning marketers on stealth advertising that targets kids.” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Whether it’s fake reviews or influencers who hide that they were paid to post, this kind of deception results in people paying more money for bad products and services, and it hurts honest competitors.”
That sort of thing gets us jazzed up. Reviews, and by extension, word of mouth (or some other form of testimonial) are how we gauge whether or not a product or service is worth our hard-earned money. If companies and influencers are misleading us, that’s our money getting took.
Full details can be found in the FTC’s press release, but below are their main points of emphasis.
The FTC has:
Warned social media platforms that some of their tools for endorsers are inadequate and may open them up to liability;
Clarified that fake reviews are covered under the guides and added a new principle that in procuring, suppressing, boosting, organizing, or editing consumer reviews, advertisers should not distort or misrepresent what consumers think of their products. This would cover review suppression like in the FTC’s recent Fashion Nova case;
Clarified that tags in social media posts are covered under the guides and modified the definition of “endorsers” to bring virtual influencers—that is, computer-generated fictional characters—under the guides; and
Added an example addressing the microtargeting of a discrete group of consumers.
In addition, the FTC also has proposed adding a new section highlighting that child-directed advertising is of special concern and that children may react differently than adults to endorsements in advertising or related disclosures.
It’s not often your heart can be warmed by something the government is doing, but in this case, I feel a little tingle. There are problems that have been identified, and the people in charge are actually doing something to address those problems.
Also, it’s great to see Fashion Nova once again getting dragged for their review malpractices (click here for that story).
Look, it’s never going to be perfect. The internet evolves at a pace unmatchable and in ways unpredictable, so the laws and regulations are never going to be final. But the attention being paid, the updates being made, it’s a sound start.
