Online reviews have always been powerful but now they’re a legal matter too. The Federal Trade Commission (FTC) has stepped up enforcement around deceptive review practices, issuing updated guidance and new penalties designed to protect consumers.
For businesses, this means fake reviews are no longer just a reputational risk. They’re a compliance risk.
What’s Changed?
The FTC has made it clear: fake reviews, whether positive or negative, are illegal. That includes:
- Paying for fake reviews
- Encouraging friends, family, or employees to leave undisclosed reviews
- Posting reviews about competitors that aren’t authentic
The penalties are steep.
Why It Matters for Businesses
For years, fake reviews were treated as a nuisance. Annoying? Yes. But often considered part of the background noise of doing business online.
That’s no longer the case. Today:
- Regulators are watching. The FTC has already brought cases against companies for posting or buying fake reviews.
- Consumers are skeptical. According to Capital One, 67% of consumers are concerned about review fraud, and 54% won’t buy from a business they suspect of fake reviews.¹
- Competitors are playing dirty. Fraudulent reviews don’t just hurt you; they unfairly boost competitors, tilting the market.
Ignoring fake reviews now puts you at risk on two fronts: losing customer trust and facing regulatory scrutiny.
What Businesses Should Do
The good news? Protecting your business is possible and the steps are straightforward.
- Monitor Reviews Regularly
Keep a close eye on your Google Business Profile and other platforms. Look for suspicious patterns like sudden spikes, overly generic language, or reviews that don’t match real customer activity. - Document & Dispute
Fraudulent reviews can be reported, but removal often requires persistence and evidence. Document the suspicious activity and use formal dispute processes with platforms. - Be Transparent
If you encourage reviews, do it the right way. Consistently ask all customers, and don’t offer incentives that could bias feedback. - Respond Authentically
Customers pay attention. 92% say responding to reviews is part of customer service, and 73% will give a business a second chance if it responds thoughtfully to a negative review.
How GatherUp Helps
Staying compliant and protecting your reputation doesn’t have to be overwhelming. GatherUp’s all-in-one platform is built to help businesses:
- Monitor every review across locations automatically.
- Detect suspicious patterns using AI-powered analysis.
- Dispute fraudulent reviews with documented workflows that improve your odds of removal.
- Defend your reputation by ensuring fake negatives don’t scare customers away and fake competitor positives don’t tilt the market.
With regulations tightening and consumer expectations rising, the legal landscape has changed. But with the right tools in place, you can protect your business and turn your reputation into a true competitive advantage.
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