The news: The US Federal Trade Commission (FTC) is taking the first steps toward creating new rules that crack down on what it calls the “fake reviews and endorsements” industry.
Amazon is an ally in the fight: Amazon has also been making a marked push to shut down fake review brokers.
The big takeaway: It’s clear that fake reviews harm the online shopping experience. Given that the rulemaking process can take years to complete, retailers would be wise to follow Amazon’s lead and take on fake review brokers.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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