The Federal Trade Commission has scheduled an informal hearing on its proposed rule banning fake reviews and testimonials. The hearing will be held at 10am ET on Tuesday, February 13.
Why This Matters: A handful of organizations — Advertising Bureau, Fake Review Watch, and a group of academic researchers — have asked the FTC for the opportunity to present their positions, which led the FTC to schedule the informal hearing.
- The request from the organizations was made after the FTC published a proposed rule last July that would stop marketers from using illicit practices such as fake reviews, suppressing honest reviews, and paying for positive reviews. Each of these practices deceive consumers from receiving real feedback about products and services, the FTC said.
What’s Going to Happen: The hearing is open to the public and will be available via webcast. During the hearing, each of the three organizations will have a chance to provide an oral statement to address issues raised during the rulemaking process.
More on the Hearing: The FTC received more than 100 comments about the proposed rule. In its comment the IAB said it wanted an oral hearing because it will allow the IAB to field questions and further explain its reasoning. Such a setting “will allow for a productive exchange, and a more fruitful discussion about how the proposed rule can be revised to address any potential deceptive and unfair practices affecting the marketplace without overburdening legitimate business practices.”
- The IAB said it plans to present numerous examples to the FTC about why some of the proposed rule’s provisions are impractical and why they should not be included in the final rule.
The Last Word: “Our proposed rule on fake reviews shows that we’re using all available means to attack deceptive advertising in the digital age,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, when the proposed rule was announced. “The rule would trigger civil penalties for violators and should help level the playing field for honest companies.”