FTC Approves Final Order Against Review Platform Sitejabber

the Federal Trade Commission (FTC) approved a last order AGAINST Sitejabberthe provider of an artificial intelligence (AI)-enabled consumer review platform, which prohibits the company from making or facilitating misrepresentations regarding ratings and reviews.

The FTC is charged in November 2024 COMPLAINT that Sitejabber collects consumer ratings and reviews for online business clients at the time of purchase, before consumers experience the product or service; uses these ratings and reviews to improve its clients’ average ratings and review counts; and provided its clients with ways to misrepresent that ratings and reviews are from customers who have used their products, the agency said on Friday (Jan. 3) press release.

When the enforcement action was announced in a press release on Nov. 6, Samuel Levinedirector of the FTC’s Bureau of Consumer Protection, said: “Platforms are not free to mislead people about consumer reviews shown for companies and their products. “

Friday’s press release announcing the approval of a final order said: “The final order settling the Commission’s complaint prohibits Sitejabber from making, or assisting anyone to make, false representations about either what ratings, average ratings, or reviews it collects, averages or shows.”

Sitejabber did not immediately respond to PYMNTS’ request for comment.

In a ANSWERS of the FTC’s allegations posted on its website on Nov. 7, Sitejabber said the FTC’s allegations are related to the company’s display of point-of-sale reviews prior to updates made by Sitejabber in early 2024.

Sitejabber said point-of-sale reviews capture real feedback about customers’ buying experiences; that the FTC announced proposed new rules and updated guidelines in June 2023 that would mean point-of-sale reviews are misleading; and that Sitejabber began separating and more clearly marking point-of-sale reviews in late 2023 when it became aware of the FTC’s changes.

“While we disagree with the implied intent and impact of the FTC’s allegations, we have always supported increased transparency and regulation around reviews,” Sitejabber wrote in its response on November 7. “This was a difficult decision. , but in the end we chose to settle, because most of the FTC’s concerns were already addressed in our prior amendments, and the agreement did not include any additional significant changes to our practice or any civil penalty.”