The Federal Trade Commission (FTC) prohibits Sitejabber, an artificial intelligence (AI)-enabled consumer review platform, from making or promoting false representations regarding ratings and reviews. approved the final order.
In a November 2024 complaint, the FTC accused Sitejabber of collecting online business customer ratings and reviews at the time of purchase, before consumers experienced the product or service. We used these ratings and reviews to inflate our clients’ average ratings and number of reviews. The agency said in a press release on Friday, Jan. 3, that it provided customers with a means to falsely misrepresent ratings and reviews as coming from customers who used their products.
FTC Director of Consumer Protection Samuel Levine announced the enforcement action in a Nov. 6 press release, saying, “Platforms do not mislead people about consumer reviews shown for companies or their products.” There is no freedom to do so.”
Friday’s press release announcing the approval of the final order stated, “The Commission’s final order resolving the Commission’s complaints prohibits Sitejabber from making any false representations regarding the ratings, average ratings, or reviews it collects, maintains, or displays, or from any third party. It is prohibited to assist in the creation of ”
Sitejabber did not immediately respond to PYMNTS’ request for comment.
In response to an FTC complaint posted on its website on Nov. 7, Sitejabber said the FTC complaint relates to the company’s display of POS reviews prior to an update Sitejabber made in early 2024. He said he is doing so.
Sitejabber said POS reviews capture authentic feedback about customers’ buying experience. In June 2023, the FTC issued new proposed rules and updated guidance suggesting that point-of-sale reviews are misleading. And Sitejabber began separating out and more clearly labeling its POS reviews in late 2023 when it became aware of the FTC changes.
“While we disagree with the implied intent and impact of the FTC’s complaint, we have always supported greater transparency and regulation regarding reviews,” Sitejabber wrote in a Nov. 7 response. “While this was a difficult decision, most of the FTC’s concerns were already addressed in previous changes, and the agreement did not include any further material changes to our practices or civil penalties, so the final I chose to make peace with it.”
