Illinois Attorney General Kwame Raoul and a group of 22 other attorneys general are to support a proposed rule by the Federal Trade Commission (FTC). This rule intends to end deceptive consumer review practices. There has been growing concern among the attorneys general for ensuring the integrity of consumer information.
The FTC's proposed Trade Regulation Rule on the Use of Consumer Reviews and Testimonials bans practices such as false reviews, misuse of reviews for unrelated products, and undisclosed affiliations between reviewers and sellers. The attorneys general have given comments on the FTC's notice, confirming their support and recommending ways to reinforce review suppression provisions.
These fraudulent practices are unfortunately not new and have negatively affected consumer decisions and the economy for years. In attempts to make accurate information available to consumers, Attorney General Raoul, the FTC, and additional state attorneys general, have launched lawsuits against companies that were involved in fake endorsements and incentivized reviews.
In 2019, a lawsuit to claim against iHeartMedia Inc. and Google LLC was filed. It was alleged that the Google Pixel 4 smartphone received false endorsements from radio personalities who, despite never using the product, claimed to have personal experience with it. This led to a settlement in 2022 that required the companies to pay $9.4 million to the states, including over $1.5 million to Illinois. They were also ordered to avoid fake endorsements moving forward.
Additionally, in 2022, Raoul and six other state attorneys general worked with the FTC in a lawsuit against Roomster Corporation and its founders. The company was accused of attracting affordable housing customers using misleading reviews for their app. In August of the same year, a settlement was reached that prevented Roomster from offering incentives for consumer reviews.
The attorney generals' support for the new FTC-proposed rule shows a united front to end these dishonest practices. Enhancing transparency and credibility in the market benefits consumers and encourages fair competition among businesses that abide by ethical standards.
