I-TEAM: Federal Trade Commission bans false company reviews
- Fact vs. fiction: A look at the false information around Hurricane Helene
- FEMA aid: Local renters can apply for assistance after Hurricane Helene
- Applying for aid: Assistance won’t affect other benefits, agency says
AUGUSTA, Ga. (WRDW/WAGT) - It’s a challenging time to find a reputable, available contractor with a backlog of service requests after the hurricane.
But as the I-TEAM explains a new federal rule is at least making researching one out online a lot easier.
Like a lot of you, the I-TEAM turned to Google reviews when looking for a local roofer after the hurricane.
FEMA chief comes to Augusta for update on Helene recovery
The director of the Federal Emergency Management Agency will be in Augusta on Wednesday as she and the mayor give an update on the response to Hurricane Helene.
The vast majority of us read reviews before making a purchase, even though studies show about 30% of those reviews are fake, which is a big problem, according to the Federal Trade Commission (FTC).
“Fake reviews and testimonials have polluted the marketplace. They harm the many consumers relying on them to pick products and providers, subverting people’s ability to make informed decisions. They also hurt competitors who work hard to comply with the law,” said the FTC in a statement in August.
This week, it is now illegal to post false consumer reviews, consumer testimonials and celebrity testimonials.
The new rule from the FTC also bans companies from paying someone to post positive or negative reviews, as well as using employees and managers to post reviews or bullying consumers into removing negative reviews.
MORE FROM THE I-TEAM:
- Helene has displaced students at nearly every Richmond County school
- A look at Helene’s impact on mail-in voting
- A look at how officials assess Hurricane Helene damage
- Some say FEMA aid isn’t coming fast enough
- What to look out for when choosing a roofing company
- How to protect your home, wallet from tree damage
Up until this week, the FTC really didn’t have a way to hold companies responsible for posting fake reviews.
Now, they do.
One single violation can result in up to a $51,000 fine, which is about the cost of replacing three to four roofs.
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