As industry leaders in customer satisfaction, feedback management, and review generation, Opiniion has closely examined the Federal Trade Commission’s (FTC) recently unveiled Rule for Consumer Reviews and Testimonials (16 CFR Part 465), effective August 14, 2024. This significant regulatory development marks a pivotal moment in the enforcement of fair marketing practices, particularly as it relates to combating fraudulent consumer reviews and testimonials.
The FTC’s new rule, which builds upon the 2023 updated guidelines for digital marketing, introduces enforceable standards aimed at deterring deceptive practices, including the use of AI-generated fake reviews. By enhancing its ability to impose civil penalties, the FTC is sending a clear message: transparency and authenticity in consumer feedback are no longer encouraged—they are mandated.
Our Expert Opiniion
At Opiniion, we believe that the FTC’s new rule is a crucial step toward a more transparent and trustworthy digital marketplace. For businesses, particularly within the rental housing industry, the new rule represents both a challenge and an opportunity. We understand the intricacies of managing consumer feedback and reputation, and we want to emphasize that Opiniion has always been, and remains, fully compliant with these regulations—even as they evolve.
Summary of the Rule’s Implications
FRAUDULENT REVIEWS AND TESTIMONIALS: The rule explicitly prohibits the creation, sale, or dissemination of reviews that misrepresent the identity or experience of the reviewer. This includes AI-generated personas and fabricated testimonials. Businesses must now ensure that all reviews associated with their brand are authentic and verifiable. At Opiniion, our longstanding commitment to seek feedback from only verified residents has always aligned with these principles.
REVIEW SUPPRESSION PRACTICES: Threats, intimidation, or false public accusations may not be used to prevent or remove a negative consumer review. Also, where reviews are not displayed based upon their ratings or negative sentiment, a business may not represent that the published reviews on its website represent all or most of the reviews submitted. Opiniion encourages businesses to adopt a balanced and transparent approach as it relates to the reviews being generated. We’ve consistently championed a fair and open approach to review generation.
COMPENSATED REVIEWS: The FTC has clarified that offering incentives for reviews, whether explicitly or implicitly tied to positive sentiment, is a violation. This reaffirms the importance of honest and unbiased consumer feedback—a standard that Opiniion has always upheld in our operations.
INSIDER REVIEWS: Reviews from company insiders, such as employees or managers, must be clearly disclosed. Opiniion advises businesses to establish strict internal policies to ensure that all connections are transparent, thus avoiding any potential conflicts of interest. Our practices have consistently adhered to these standards, ensuring full transparency in all review-related activities.
TRANSPARENCY ON COMPANY-CONTROLLED WEBSITES: It is imperative for businesses to be upfront about any affiliation with review websites they control. Opiniion recommends a full audit of your digital properties to ensure compliance and maintain consumer trust. We’ve always prioritized transparency, and our platform reflects that commitment.
FAKE SOCIAL MEDIA METRICS: The rule’s prohibition on the purchase of fake social media indicators highlights the FTC’s commitment to authenticity. Businesses must be vigilant in ensuring that their online presence reflects genuine consumer engagement. At Opiniion, our practices are fully aligned with these expectations, ensuring that any social media metrics we manage or influence are authentic and reflective of true customer interactions.
Some Recommendations
To ensure your business is aligned with these new standards, we recommend the following:
REVISE AND STRENGTHEN MARKETING POLICIES: Take proactive steps to update your marketing policies, with particular attention to social media monitoring and other third-party vendor practices.
EDUCATE YOUR TEAM: Equip your employees, including senior leadership, with the knowledge they need to navigate these new regulations. Disclosure and transparency must become second nature.
NOTIFY CUSTOMERS IN ADVANCE: Let them know that Opiniion will be sending feedback requests to get their input for the betterment of business operations.
By staying ahead of these regulatory changes, your business can not only avoid penalties but also build stronger, more authentic relationships with your residents. Opiniion’s ongoing commitment to compliance ensures that we’re not just following these standards—we’re leading by example.
For more information, view our guide – The State of Review Generation Compliance. In it, you’ll learn more about Opiniion’s position on these topics, and we’ll take a deep dive into the state of review generation, examining the policies and guidelines of different review sites, including Google, Facebook, Yelp, and even the Federal Trade Commission (FTC).
