The FTC recently issued a decision and order against Sitejabber (GGL Projects, Inc.) for misleading practices in how it displayed customer reviews and ratings. The order prohibits Sitejabber from misrepresenting the authenticity of its ratings, ensuring reviews are only from customers who have received and experienced the product. The company is now required to keep records and submit regular compliance reports to the FTC.

https://www.ftc.gov/news-events/news/press-releases/2024/11/ftc-order-against-ai-enabled-review-platform-sitejabber-will-ensure-consumers-get-truthful-accurate

What Sitejabber Did Wrong: Sitejabber collected and displayed ratings in a way that led users to believe they represented only verified experiences, when in fact, some ratings were from customers who hadn’t yet received the product. This misled consumers and violated FTC regulations.

Advice for Online Businesses: Transparency in collecting and displaying reviews is crucial. Businesses should:

1. Only display verified reviews from customers who have experienced the product.
2. Avoid soliciting ratings at the point of purchase if customers haven’t used the product.
3. Regularly audit review processes to ensure compliance with FTC guidelines.

This case highlights the importance of honesty and accuracy in customer feedback, as misleading reviews can damage trust and lead to regulatory action.

#CustomerTrust #OnlineReviews #FTCCompliance #Transparency #EcommerceTips