Interactive Counsel

Arent Fox's interactive media law blog - latest news and trends in advertising, data security & privacy, and IP.

Interactive Counsel
Fake But Loving It: Concern Growing Over False Reviews on Yelp

Companies are advised to thoroughly investigate the companies they hire to manage their online reputations and reviews to ensure that only truthful and accurate reviews and comments from actual consumers are posted online. A company that does not thoroughly investigate the companies they use could find themselves in violation of the Federal Trade Commission’s (FTC) Guides Concerning the Use of Endorsements and Testimonials in Advertising (the 'Guides'). The Guides set forth the principles that the FTC uses when evaluating testimonials and endorsements.

The FTC and other regulators recognize that consumer endorsements and testimonials are a powerful selling tool for businesses and that some companies are exploiting that by writing and posting fake online reviews. Recent studies have estimated that almost 20% of Yelp reviews are fake or suspicious and filtered by Yelp’s fraud algorithm. To combat these tactics, regulators are investigating and taking action.

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Arent Fox LLP, founded in 1942, is internationally recognized in core practice areas where business and government intersect. With more than 350 lawyers, the firm provides strategic legal counsel and multidisciplinary solutions to clients that range from Fortune 500 corporations to trade associations. The firm has offices in Los Angeles, New York, San Francisco, and Washington, DC.