FTC Released a Guide Featuring Online Customer Reviews: A Guide for Platforms (January 2022)

FTC Guidance: Featuring Online Customer Reviews

January 2022

The Federal Trade Commission (“FTC”) released a guide Featuring Online Customer Reviews: A Guide for Platforms, which emphasizes the importance of truthful and accurate online reviews for consumers seeking information about products and services. Businesses operating platforms that feature reviews must ensure these reviews reflect genuine customer experiences.

Different businesses have varying methods for collecting and displaying reviews, such as open systems allowing all users to submit feedback and closed systems limiting reviews to verified purchasers. Regardless of the method, companies must be vigilant against fake reviews and deceptive practices.

Key Principles for Review Collection

1. Avoid Bias. Do not solicit reviews only from individuals likely to leave positive feedback.

2. Incentives. If offering incentives for reviews, do not condition these incentives on the review being positive, as this can bias the feedback.

3. Negative Reviews. Do not discourage or prevent the submission of negative reviews.

Companies must have effective processes to verify the authenticity of reviews while being transparent about moderation practices:

1. Verification. Implement reasonable measures to confirm reviews are genuine and free from manipulation.

2. Integrity of Reviews. Do not edit reviews to alter their meaning or tone.

3. Equal Treatment. Treat positive and negative reviews with equal scrutiny.

When publishing reviews, companies should prioritize transparency:

1. Inclusive Publication: Publish all genuine reviews, including negative ones.

2. Avoid Misleading Displays. Do not give undue prominence to positive reviews over negative ones.

3. Disclosure of Connections. Clearly disclose any material connections between reviewers and the company.

4. Transparency in Processes. Clearly communicate how reviews are collected, processed, and displayed.

5. Post-Publication Monitoring. Maintain procedures to identify and address fake or suspicious reviews after they are published.

The FTC emphasized that adhering to these principles will help companies build consumer trust and avoid deceptive practices in managing online customer reviews.

 

For more information, see here:  https://www.ftc.gov/business-guidance/resources/featuring-online-customer-reviews-guide-platforms

 

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