The Federal Trade Commission (FTC) recently took action against SiteJabber, a review platform that uses AI, for misleading people about the honesty of reviews and ratings. This is a big reminder to all businesses that being honest and clear with customer reviews isn’t just good practice—it’s the law. Here, we explain what happened, why it matters, and how merchants can protect themselves.
What SiteJabber Did Wrong
According to the FTC’s complaint, SiteJabber misled consumers by combining the reviews and ratings from a point of purchase survey with standard product reviews. These reviews were collected right after the purchase, before customers had the chance to use the products or services. By including these early survey ratings with product reviews, SiteJabber artificially boosted average ratings, making it seem like most customers were satisfied. SiteJabber also allowed clients to publish these survey responses as if they were genuine product reviews, which misled potential customers. The problem wasn’t with using a post-purchase survey, which can be useful for understanding the shopping experience. The issue was that SiteJabber combined these survey ratings with actual product reviews, which was misleading and significantly inflated average ratings. The post-purchase survey was intended to gather feedback on the shopping experience, not the product itself.
How the FTC Responded
The proposed order from the FTC stops SiteJabber from lying about customer ratings or reviews in the future. This applies not only to the reviews they collect and show, but also to any help they might give to others in making fake claims about reviews.
Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, made it clear that dishonest review practices will not be allowed, saying, “Platforms don’t have free rein to mislead people about the consumer reviews shown for companies and their products.” The FTC’s move against SiteJabber is part of a larger effort to stop all kinds of lies in the review system, including new rules on fake reviews and testimonials.
Why This Matters for Online Sellers
This case is a reminder of the risks for businesses that are involved in misleading review practices. Trust is the foundation of online shopping, and fake reviews can destroy customer trust—plus lead to legal trouble. Platforms like SiteJabber, including RaveCapture, have a responsibility to protect their clients who rely on their software. It is unlikely that (most) SiteJabber’s clients knew about these deceptive practices, which might be why the FTC is targeting the platform rather than a specific merchant. However, this does not mean that merchants are safe from future action—in fact, the FTC has stated they may go after individual merchants as well, with fines of up to $51,000 against merchants who use deceptive practices. Merchants who use review platforms need to make sure they follow FTC rules to protect their reputation and avoid fines.
Tips for Honest Review Management
To help merchants stay within FTC rules and be transparent, here are some best practices based on the FTC’s guidelines:
- Collect Reviews Honestly: Don’t collect reviews before customers have received or used your product. Reviews should be based on real experiences.
- Be Careful with Incentives: If you give rewards for reviews, don’t make them depend on the review being positive. Rewards can add bias, so be clear about it.
- Moderate Reviews Fairly: Use both automatic tools and people to check for fake or abusive reviews, but treat positive and negative reviews the same. Don’t make negative reviews face more checks.
- Show All Real Reviews: Don’t hide or remove negative reviews. Only showing positive reviews or changing how they are presented can be misleading and break FTC rules.
- Be Transparent About Relationships: If reviewers get compensation, free products, or have any connection to your company, make sure that relationship is clearly explained.
- Properly Use Post-Purchase Surveys: If you use a post-purchase survey, ensure that the responses are counted only as shopping experience feedback (like Company Reviews), not as product reviews. RaveCapture treats these survey responses as Company Reviews, not product reviews.
Protect Your Business by Following FTC Guidelines
The FTC’s action against SiteJabber is a warning to make sure your review practices are fair, clear, and follow the rules. By sticking to these guidelines, merchants can protect their reputation and keep their customers’ trust.
Want to learn more about managing reviews ethically and effectively? Reach out to us at RaveCapture—we’re here to help you navigate compliant review management and build genuine trust with your customers.