FTC to monitor compliance at AI-enabled product review platform after misleading ratings
By 
Adrianne Appel2024-11-07T19:03:00
Artificial intelligence-enabled product review platform Sitejabber agreed to a 10-year compliance monitorship with the Federal Trade Commission (FTC) following allegations that it inflated product ratings and misled the public.
Sitejabber, owned by GGL Projects, creates ratings for products and services on behalf of about 130,000 companies, and displays the reviews on its website for the public to view. The ratings and reviews also come up on Google when people search for information about a product or service.
However, the reviews were inaccurate, the FTC alleged in a complaint, because they were based on what consumers said about the product right after purchase and before receiving or using it. Sitejabber also grossly inflated the reviews, the FTC alleged.
THIS IS MEMBERS-ONLY CONTENT
You are not logged in and do not have access to members-only content.
If you are already a registered user or a member, SIGN IN now.
Related articles
-
PremiumU.K. competition and markets regulator wields new power to combat fake online reviews
Fake reviews of products and services are a global phenomenon, but regulators in the U.K. are beginning to use newly expanded powers to protect buyers and honest competitors following a recent crackdown by U.S. authorities.
-
PremiumFTC final ‘Click to Cancel’ Rule requires disclosure of material facts before enrollments
Tthe Federal Trade Commission, after years of public comments and changes, released a final “Click to Cancel” Rule, which requires a customer’s express consent before they can be charged and prohibits practices that make it difficult for a customer–whether a family or another business–to cancel.
-
PremiumFTC sounds alarm on business practices turning into ‘vast surveillance’
The Federal Trade Commission took aim at the business models of some of the world’s largest companies, publishing a years-long study that decried technologies that have created “vast surveillance” networks that expose people to “a host of harms” and violate children’s privacy laws.
More from Regulatory Enforcement
-
ArticleBoA settles class-action related to its dealings with Jeffrey Epstein
Bank of America has agreed to settle a class-action lawsuit alleging know-your-customer and other failings in its dealings with convicted sex offender Jeffrey Epstein.
-
News BriefSEC’s Uyeda: ‘Enforcement is the wrong way’ to handle off-channel communications
The U.S. Securities and Exchange Commission’s Mark Uyeda told an audience of investment advisers that the SEC will no longer prioritize stand-alone enforcement actions for violations of the SEC’s rules on off-channel communications.
-
News BriefAdobe agrees to $150M settlement over alleged cancellation fee violations
Adobe agreed to a $150 million settlement with the U.S. Department of Justice over accusations that it concealed software termination fees and made it difficult for customers to cancel.