

Violations are subject to civil penalties and other legal consequences. The FTC recently voted to put hundreds of businesses on notice about fake reviews and misleading endorsements, which may result in significant penalties against marketers that engage in this misconduct.īanks and financial companies should ensure that their customer review practices comply with all applicable laws, including the Consumer Financial Protection Act. Today’s effort is related to the Federal Trade Commission’s efforts to deter fake reviews and related fraud across the digital economy. The guidance explains why these practices may be unlawful. Review Suppression or Manipulation: Consumers cannot easily shop and compare products and services when firms engage in practices to limit the posting of negative reviews or manipulate reviews to trick or confuse consumers.

Laundering fake reviews in ways that appear completely independent from the company to improve their ratings may constitute a deceptive practice.
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“Corporate disinformation campaigns that suppress legitimate reviews or manufacture fake reviews are not only a threat to free speech and fair competition, they are also illegal.” “In America, no corporation should be able to silence a customer from posting an honest review online,” said CFPB Director Rohit Chopra. The guidance also highlights that practices such as posting fake reviews or inserting clauses that forbid a customer from publishing an honest review may violate the Consumer Financial Protection Act. The CFPB seeks to ensure that customers can write reviews, particularly ones posted online, about financial products and services that accurately reflect their opinions and experiences. Today, the Consumer Financial Protection Bureau (CFPB) issued policy guidance regarding potentially illegal practices related to consumer reviews.
