Editorial voice from elsewhere
Federal regulators took woefully inadequate action recently on fake online reviews of a consumer product. Such action should be more aggressive and tougher.
The Federal Trade Commission accused Houston-based Sunday Riley Skincare of directing the posting of glowing online reviews of its products on the website of Sephora. The leader of the beauty products maker instructed her employees to do so, and then used technology to hide the IP addresses of the posters to mask that employees were writing the four- and five-star reviews.
The FTC’s settlement put an end to the bogus review posting but imposed no financial penalties. Two commission members objected, with one saying the settlement was unlikely to deter other would-be wrongdoers.
True.
Even an increase of one star in a rating on Amazon.com gives a big jump to sales. That cha-ching is what entices manufacturers and distributors to consider such shady dealings.
Reviews are available on nearly every product website, and frequently are examined by would-be buyers. Fake reviews are unfair and can be dangerous to the unsuspecting public.
In the Sunday Riley case, the brazenness is jolting. Ms. Riley, the chief executive, sent an email to her staff to post reviews, saying in part: “Make sure to NOT compare the product to other products, to not use foul language and to be very enthusiastic without looking like a plant.”
The FTC found multiple fake reviews, going on for years, but its settlement with Sunday Riley called for the practice to end but no fines. If the company posts further fake reviews, civil penalties will kick in.
Retailers have an obligation to monitor product reviews on their websites. Some companies remove those that aren’t signed by a verified customer. Amazon said it prevented more than 13 million bogus reviews on its website last year.
Self-policing is fine, but federal regulators should step up their game.
The FTC should take online commerce seriously to protect the public and to punish the cheaters. That means implementing sanctions.