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Experts examine consumer protection regulations to prevent fake online reviews.
When exchanging goods and services online, customer reviews help potential consumers make informed purchase decisions and allow businesses to advertise their products freely. But those reviews may not be trustworthy.
Some states have taken up the mantle to enact bills intended to protect consumers from trusting the verity of online reviews. A bill in Tennessee, for example, would have rendered the posting of fraudulent online reviews a violation of the state's Consumer Protection Act.
The FTC has also already pursued enforcement actions against certain perpetuators of fake reviews. For example, just a few months after seeking comment on the proposed rulemaking, the FTC ordered Fashion Nova, a digital fashion retailer, to pay $4.2 million for suppressing negative reviews of its products. The FTC also sued Roomster, a digital apartment and roommate platform, for purchasing reviews and charging consumers for fraudulent apartment listings. An assortment of individual states, including California and New York, have also filed lawsuits.
Following a Supreme Court decision that limited the FTC's ability to pursue monetary relief for consumers under the Federal Trade Commission Act, however, these individual enforcement actions may be insufficient to protect consumers from deceptive online review practices.
In an article published by the Journal of Consumer Policy, Madalena Barreto Torres de Mendonca Narciso of the Netherlands's Maastricht University classifies fake reviews as "an obstacle that haunts consumers, practitioners, regulators, and academics alike." Focusing on the regulatory standpoint, Narciso suggests that online reviews have the potential to play a complementary regulatory role, working in tandem with more traditional consumer law to protect consumers. Narciso explains that, particularly in the European Union, regulations protect consumers by providing them with information, which has resulted in extraordinarily long terms and conditions that overload users. Online reviews could, in theory, provide an additional, simpler source of information about the product or service that consumers could use to inform their purchase decisions. Eventually, these reviews could justify the deregulation of consumer information, Narciso contends.
In a report published by the Center for Data Innovation, Morgan Stevens and Daniel Castro discuss the FTC's recent steps to combat fake reviews. The FTC, Stevens and Castro explain, has jurisdiction to bring actions against companies accused of manipulating their consumer reviews. In 2022, for example, the FTC settled with a company that censored negative reviews on its website. In addition, at the end of 2022, the FTC reported its intention to enact more stringent guidelines against review manipulation. Stevens and Castro provide several recommendations for the FTC and other policymakers to stop the rise of fake reviews, including enforcing stricter penalties and regularly updating the FTC's best practice guidelines for businesses and consumers.
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Amazon is turning grocery-picking gig workers into Whole Foods employees as delivery demand booms
Robert Bruno, a Whole Foods employee in Massachusetts, told CNBC the new structure takes away many of the perks in terms of flexibility, with shoppers free to accept multiple jobs, while the shorter shifts helps them to create their own schedule.
Inside Liquidity Services and the $644 billion liquidation market fueled by the rise in returns
watch now
VIDEO13:5613:56
Climate
The Whole Foods spokesperson confirmed that Amazon tracks certain metrics.
Amazon shoppers typically fulfill anywhere from 15 to 20 orders per day, though that number can vary if it's busy or slow, according to a "Day in the Life" video posted by Whole Foods on YouTube.
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The recent growth of gambling problems in the fast-paced digital world today around the world is alarming.
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, prize competitions, a wagering contract).
Is online gambling legal in India?
The States in India have enacted their own legislations to regulate such activities and most of the states have an exemption for games of skill.
These statutes are pretty old.
There exists a lacuna that leaves room for ambiguous interpretations.
Legal Question & Answers
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