November 15, 2024 - How New Federal Rule Affects Business Reviews
In case you missed it, a federal rule banning fake reviews recently went into effect.
The Federal Trade Commission’s (FTC) new rule — originally issued in August 2024 — officially went into effect in October.
According to the FTC, this new rule now holds businesses accountable for posting or purchasing fake reviews, including those from people who don’t exist or have never engaged with the product or service.
“Fake reviews not only waste people’s time and money, but also pollute the marketplace and divert business away from honest competitors,” said FTC Chair Lina M. Khan in an August statement.
Violating the rule can lead to significant legal consequences, as well as penalties from Google and Yelp.
What’s Not Allowed
In short, the FTC is targeting the following misleading practices:
- Fake or false consumer reviews
- Buying positive or negative reviews
- Insider and consumer testimonials
- Company-controlled review websites
- Review suppression
- Misuse of fake social media indicators
Businesses and consumers alike can report fraudulent and bad business practices at ReportFraud.ftc.gov.
The Right Approach to Generating Reviews
At Melon Local, we’re all about building your reputation on trust and transparency, and we believe the same should go for generating reviews.
Here are some tips for maintaining a healthy, authentic online reputation:
Ask for Reviews From Real Customers
Don’t hesitate to ask for feedback anytime after having a positive interaction with a customer. Encouraging your customers to leave a review on Google or Yelp makes it easy for them to share their experience, and every authentic review adds to your business’s credibility.
Respond to ALL Reviews
Customer feedback is valuable, even if it’s a criticism. Whether it’s a positive or negative review, a thoughtful response can show potential customers that you truly care about their needs. Being responsive also shows you’re transparent and can encourage more users to leave reviews.
Highlight Positive Reviews on Social Media
Social media is a great tool for showcasing happy customer stories and testimonials. Not only does this present your business in a positive manner, but it also may encourage more people to leave reviews for your business.
Partner with a Trusted Digital Marketing Agency
Of course, teaming with a digital marketing agency — especially one rooted in results like Melon Local — can help you stay on top of your digital reputation!
From ensuring your business listings are up-to-date to creating engaging social media posts highlighting positive customer feedback, we’re here to let your customers know you run the best agency in town!
Book a demo today to learn more about starting a fruitful partnership with Melon Local!