New FTC Rule to Ban Fake Reviews: What Amazon Sellers Need to Know

The Federal Trade Commission (FTC) recently proposed a new rule that would ban the creation, purchase, and dissemination of fake reviews. The rule is intended to protect consumers from misleading information and to level the playing field for businesses that rely on honest reviews to attract customers.

The proposed rule is particularly significant for Amazon sellers, as the company's marketplace has been plagued by fake reviews for years. In fact, a recent study found that up to 30% of Amazon reviews may be fake.
The FTC's proposed rule would prohibit a wide range of fake review practices, including:

• Creating or purchasing fake reviews
• Repurposing reviews for a different product
• Compensating or incentivizing reviewers
• Using misleading review suppression practices
• Misusing indicators of fake social media influence

​The rule would also require businesses to disclose any material connection they have with a reviewer, such as if the reviewer is an employee, a paid endorser, or a friend or family member.
The proposed rule is still in the early stages, and it is not yet clear when it will be finalized. However, Amazon sellers should start preparing now by reviewing the proposed rule and taking steps to ensure that their reviews are legitimate.
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Tips for Amazon Sellers to Avoid Fake Reviews

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• Only allow reviews from verified customers. Amazon allows sellers to require that reviewers have purchased a product before they can leave a review. This helps to weed out fake reviews from people who have never actually used the product.
• Monitor your reviews regularly. Use a tool like ReviewTrackers to track your reviews and identify any suspicious activity.
• Respond to negative reviews promptly and professionally. Don't ignore negative reviews, even if they are fake. Respond to them promptly and professionally, and address any concerns that the reviewer may have.

​The FTC's proposed rule is a welcome step towards protecting consumers from fake reviews. Amazon sellers should take steps to ensure that their reviews are legitimate, and they should be prepared to comply with the rule when it is finalized.

How AI Influenced the New FTC Rule

Artificial intelligence (AI) is playing a growing role in the fight against fake reviews. In recent years, AI-powered tools have been developed to help businesses identify and remove fake reviews from their websites.

The FTC's proposed rule takes AI into account. The rule defines "fake review" to include reviews that are "generated by a computer program or other automated means." This means that businesses that use AI to generate fake reviews could be subject to enforcement action under the proposed rule.
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The FTC's proposed rule is a significant step forward in the fight against fake reviews. The use of AI will likely play an even greater role in the future, as businesses and regulators continue to find new ways to combat this growing problem.

What Amazon Sellers Need to Look Out For

Amazon sellers need to be aware of the new FTC rule and take steps to comply with it. Here are some things to look out for:

• The rule would prohibit the creation, purchase, and dissemination of fake reviews.
• The rule would require businesses to disclose any material connection they have with a reviewer.
• The rule does not apply to reviews that are clearly marked as "sponsored" or "paid."

​Amazon sellers should review the proposed rule carefully and take steps to ensure that their reviews are legitimate. They should also be aware of the potential for AI-powered tools to be used to generate fake reviews.
By taking these steps, Amazon sellers can help to protect consumers from misleading information and ensure that their own businesses are not harmed by fake reviews.