The FTC is Cracking Down on Fake Google Reviews

Since publishing its Trade Regulation Rule on the Use of Consumer Reviews and Testimonials (the “Rule”) last year, the Federal Trade Commission (FTC) has been aggressively targeting companies’ use of fake reviews online. This specifically includes fake Google reviews. While Google has reportedly begun cracking down on fake reviews as well, the FTC has the ability to impose substantial monetary penalties—including penalties of more than $50,000 per fake review plus up to 10% of a company or firm’s global revenue derived from deceptive trade practices. 

What Constitutes a “Fake Review” for FTC Compliance Purposes?

The FTC’s Rule includes two key defined terms—“consumer review” and “consumer testimonial.” While these definitions largely align with how these terms are colloquially used, there are a couple of key aspects of the FTC’s definitions that are particularly relevant to fake Google reviews: 

• The FTC’s definition of a “consumer review” includes reviews from “purported consumers;” and, 
• A “consumer rating” qualifies as a type of “consumer review.” 

Thus, not only does the FTC’s Rule specifically address fake written reviews, but it also addresses ratings (i.e. five-star ratings on Google) submitted by “purported consumers.” Under the Rule, paying for fake reviews and ratings, having insiders post fake reviews and ratings, and paying for negative reviews targeting competitors are all examples of practices that have the potential to trigger FTC enforcement action. 

How Does the FTC Identify Fake Google Reviews?

This raises an important question: How does the FTC identify fake Google reviews? 

The FTC identifies fake Google reviews through a variety of means. If a company or firm’s written reviews are all very similar (or very similar to those of other companies or firms), this is a red flag that the reviews may have been purchased. If a brand-new company has hundreds or thousands of five-star Google reviews, this can also be a red flag. With that said, the FTC does not have personnel who spend their days searching on Google for signs of fake reviews. 

Instead, most FTC enforcement actions involving fake Google reviews are likely to be triggered by complaints from whistleblowers or competitors. If the FTC is looking into a company or firm’s marketing practices for other reasons, it may check for compliance with the Rule as well. 

What Can (and Should) Companies and Firms Do to Avoid FTC Scrutiny?

With all of this in mind, what can (and should) companies and firms do to avoid FTC scrutiny? First and foremost, if a company or firm has fake Google reviews online, it should work with counsel to remove these immediately. Going forward, companies and firms should ensure that their marketing teams have a clear understanding of the rules that apply, and they should implement policies and procedures that are designed to address all pertinent aspects of FTC compliance. 

Schedule a Call with an FTC Compliance Lawyer at Oberheiden P.C.

If you need to know more about the FTC’s ban on fake Google reviews or defending against an FTC investigation, we invite you to get in touch. Call 888-680-1745 or contact us online to schedule a call with an FTC compliance lawyer at Oberheiden P.C. today.