FTC Continues Fight Against Fake Consumer Reviews

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  • The FTC has issued a proposed order to resolve its investigation of GGL Projects, Inc., d/b/a Sitejabber, over allegations that the company deceived consumers by misrepresenting ratings and reviews in violation of the FTC Act.
  • According to the complaint, Sitejabber’s online business reputation and consumer review management services platform assisted clients in artificially inflating the number of reviews and average ratings displayed on the clients’ Sitejabber.com profile pages—which were also displayed on Google and in other search results—and failed to disclose that the reviews were collected at the point of sale before customers had experienced the service or product.
  • The FTC’s proposed decision and order prohibits Sitejabber from misrepresenting, or assisting clients in misrepresenting, that the average customer rating, number of ratings or reviews, or any rating or review of a product, service, or business reflects the views of customers who actually received the product or service purchased or had an opportunity to experience the product or service.  The order also imposes compliance and recordkeeping obligations on Sitejabber, among other relief.
  • As we have previously reported, the FTC recently finalized its Trade Regulation Rule on the Use of Consumer Reviews and Testimonials, which prohibits a range of deceptive practices relating to fake or misleading reviews.
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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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