(ABC 6 News) – Are you sick of trying to figure out which Amazon review is real and which are fake?
In the world of online shopping and selling, customer reviews can often make the difference in
which product to buy and which to ignore.

The Federal Trade Commission (FTC) is taking decisive action to combat the pervasive issue of
fake reviews on online shopping platforms. This problem, which has plagued retailers like
Amazon and Walmart since the inception of e-commerce, has only grown more challenging with
the rise of AI-generated reviews.

A recent analysis revealed that nearly half of all Amazon reviews are either fake or incentivized,
prompting the FTC to introduce new regulations. These rules aim to penalize businesses that
engage in deceptive practices related to product reviews.

The new FTC rules are comprehensive and target various aspects of fake review generation:

• Prohibition of AI-generated reviews: Sellers are now prohibited from using AI technology to fabricate reviews.
• Ban on purchasing fake reviews: Both positive and negative fake reviews are explicitly banned under the new regulations.
• Disclosure requirements for company-affiliated reviewers: Reviews written by employees or associates of the seller must clearly disclose their connection to the business.
• Prohibition of incentivized reviews: Sellers cannot offer compensation or other inducements in exchange for positive reviews.

The FTC is prepared to enforce these rules with hefty fines. Businesses found to violate any of
the regulations could face penalties of up to $51,744 per violation. This could have implications
for programs like Amazon’s Vine Voices and Walmart’s Spark Reviewer, which offer free
products in exchange for “honest” reviews. While these programs require reviewers to be
transparent, the FTC’s rules may raise questions about the inherent bias in such incentivized
reviews.

The FTC’s crackdown on fake reviews is a welcome development for consumers who rely on
reviews to make informed purchasing decisions. With 75% of shoppers consulting reviews
before buying, the prevalence of fake reviews has made it increasingly difficult to gauge the true
quality of products.

The new rules, expected to be in place before the holiday shopping season, could significantly
improve the reliability of online reviews. By holding sellers accountable for deceptive practices,
the FTC aims to create a more transparent and trustworthy online shopping environment.