Do you rely on reviews when you buy new products or services? Be aware, some reviews may be fake.
Sitejabber, a company offering an AI-enabled consumer review platform, deceived consumers by saying the ratings and reviews it published came from customers who had used a product or service, the Federal Trade Commission charged Wednesday.
Under a proposed order settling the agency’s lawsuit, Sitejabber will be prohibited from making misrepresentations about consumer ratings or reviews. It’s one of the first enforcement actions under new FTC rules banning companies from making or selling fake reviews.
“Platforms don’t have free rein to mislead people about the consumer reviews shown for companies and their products,” Samuel Levine, director of the FTC’s Bureau of Consumer Protection, said in a statement.
Sitejabber collected ratings and reviews for its clients from consumers when they bought items, before they had the chance to use the products or services they purchased, according to the FTC lawsuit. For example, after online customers checked out, they were asked to “rate your overall shopping experience so far” on a five-star scale and then to “type a quick message about your shopping experience so far.”
Sitejabber allegedly used these early ratings and reviews to inflate the average ratings and review counts of its clients on the company’s review platform, claiming that the ratings indicate that most customers are generally satisfied with their purchases.
Sitejabber’s inflated ratings and review counts were also displayed in Google and other search results.
The commission voted to issue the administrative complaint as part of the settlement process. It will become final after a comment period.
