FTC to crack down on fake reviews to protect businesses

NORFOLK, Neb. — Fake reviews, online or on social media, can be a headache for business owners.

“I would say it’s a growing problem,” Weyhrich said. “It’s happening more and more unfortunately."

Troy Weyhrich, President and CEO of Renegade Stores, said the reviews can divert customers to other sites.

“A lot of it seems like overseas stuff where they are trying to manipulate our customers or use our traffic to whatever they want to shape it in," Weyhrich said.

The Federal Trade Commission (FTC) is looking to crack down on these illegitimate reviews.

In August, they issued a new rule banning reviews from people who don’t exist or are AI-generated including people who have no experience with a business.

This comes after business owners across the country say their businesses were ruined by fake reviews.

Web and E-commerce manager at Renegade Stores Ashley Vester said the business sees a few of these types of reviews a week.

“Sometimes we just have to leave them out there if we can’t remove them,” Vester said. “We do always comment on it to make sure people know not to click on any links.”

As far as consequences for the reviews, a prior ruling from the Supreme Court in AMG Capital Management LLC v. FTC hinders the agency to seek monetary relief for consumers.

Weyhrich still believes the new rule is encouraging to see for business owners.

“I think the new ruling will help,” Weyhrich said. “It can’t hurt for sure. The problem is way worse than it was in the early days.”

The new rule was passed with a 5-0 vote and will go into effect on Oct. 21.