FTC regulations regarding fake reviews don't go far enough: Hold sites accountable!

“Struggling to cope with the aftermath of an injury which had rendered me psychologically and physically immobilized, I found solace at this remarkable facility… They recognized my unique trauma experience while providing both professional services as well as individualized attention.”

Should I require mental health treatment, this seems like the place? Wrong: this was taken from one of hundreds of fake Yelp and Google reviews posted for four states across psychiatric clinic chains.

Online reviews were one of the great innovations of the tech revolution, giving consumers easy access to real experiences within just a click away. Unfortunately, technology’s one-time boon has turned into one of its many downsides; fake reviews now clog review sites deceiving millions of consumers while damaging thousands of legitimate businesses.

In August, the Federal Trade Commission finally released its long-awaited rule against fake online reviews – although not without some flaws: While addressing those responsible who buy and sell fake reviews directly, while doing little or nothing themselves to stop fraud: Third-party review platforms themselves remain relatively immune.

Over six years of research, I have discovered numerous instances of fake online business reviews across various professions — doctors, dentists and lawyers as well as dog walkers, piano teachers and even children’s charities are all prone to this practice. While maintaining high ratings is partly to blame here; poor oversight by review platforms also allows cheaters to thrive unpunished, distorting marketplace dynamics in favor of dishonest businesses.

Social media sites such as Instagram and Facebook play an active part in fraudster activities; numerous groups exist that facilitate buying, selling and trading fake reviews online. Amazon filed suit in 2022 against administrators of 10,000 such Facebook groups to demonstrate just how widespread the issue was; one group alone boasted 43,000+ members according to Amazon!

Fake review sites continue to thrive even beyond the reach of the FTC in nations like Pakistan, India and Bangladesh.

One Bangladeshi Facebook group saw an entrepreneur advertise jobs for his fellow citizens: posting fake Google and Trustpilot reviews of American businesses – such as medical practices – which needed review services on Google or Trustpilot, providing reviews to be written, links to appropriate Google or Trustpilot pages, draft reviews to be written for, payment procedures and so forth. Dozens of Bangladeshis responded.

Review sellers on Instagram often recruit Yelp Elites – Yelp’s most reliable reviewers – and pay them $20-50 to post prewritten Yelp reviews about businesses they represent.

Fake review trading is another potentially devious practice occurring within Facebook groups. I witnessed one Virginia psychologist trading Yelp reviews with an educational supply store from Missouri; another Michigan eye surgeon trading Yelp reviews with Seattle martial arts studio; while one Los Angeles law firm trading reviews with local psychic.

While review platforms claim they’re fighting fraud, their negligence and lack of transparency compounds the issue. Consider:

Review platforms devote too few resources to unearthing fake reviews, yet I was still able to identify thousands of them using no automation on any given day – across Google, Yelp and Facebook – by myself alone. Should we believe Google cannot detect that people reviewing a Missouri chiropractor, Wisconsin orthodontist, New York podiatrist and Arizona endodontist all at the same time without them realizing this? Yelp’s system doesn’t spot plagiarized Tripadvisor reviews at its site while Facebook doesn’t find anything suspicious when an endodontic practitioner received 293 reviews all in one day from various platforms with many customers complimenting him on his items delivered fast with excellent delivery service remarked with accolades including for his products’ “items delivered with care!” And packaging!”?

Too few scammers suffer the consequences. There is an endless number of businesses which have had multiple fake reviews removed by Google or Yelp without suffering repercussions, because consumers remain ignorant. Review sites must inform consumers fully on a business’s review history.

Review patterns on profiles can often remain hidden; Google allows reviewers to make their profiles private, which has become an easy way for fakers to obscure suspicious review patterns. Furthermore, other review websites remain more opaque as consumers cannot even view any details regarding someone’s review history on most medical review sites or even Better Business Bureau pages.

Review platforms remain mostly opaque to the general public. Last fall, fake negative Google and Facebook reviews besieged an Florida contractor without response from either tech giant. Only after receiving local media coverage did Google respond by taking steps to delete some reviews; Facebook however never replied and many remain active today – this case being just one instance in an infinite sea.

FTC’s new rule can be seen as similar to going after street dealers while leaving drug cartels alone. Tech companies’ negligence and indifference reward cheating practices that diminish business ethics while distorting marketplace conditions.

If the FTC cannot take steps against third-party review platforms for creating fake reviews through Section 230, Congress needs to act now.

Kathryn Dean is the brains behind Fake Review Watch and its accompanying YouTube channel.