FTC Charges Review Platform Sitejabber With Deceiving Consumers
The Federal Trade Commission (FTC) announced a new enforcement action against Sitejabber, charging the review platform with deceiving consumers through misrepresentative reviews and ratings.
Sitejabber, which uses artificial intelligence (AI) to power its consumer review platform, artificially inflated average ratings and review counts, the FTC alleged in a Wednesday (Nov. 6) news release.
Under a proposed order, Sitejabber will be banned from making future misrepresentations and from making other misrepresentations about consumer ratings or reviews, according to the release.
“Platforms don’t have free rein to mislead people about the consumer reviews shown for companies and their products,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection. “Along with our rule on fake reviews and testimonials, cases like this one show that we’ll act to stop all forms of deception in the review ecosystem.”
According to the FTC’s complaint, GGL Projects, which operates as Sitejabber, surveyed consumers at the point of sale, before they could experience the goods or services they bought. They then used the results of those reviews to “deceptively inflate the average ratings and review counts of its clients on the company’s review platform,” the FTC said.
On Tuesday (Nov. 5), the FTC accused digital banking platform Dave of charging consumers undisclosed fees.
The FTC is alleging that Dave has participated in deceptive marketing practices and charged its app’s users fees without consent. Dave is charged with violating the FTC Act and the Restore Online Shoppers’ Confidence Act, PYMNTS reported Tuesday.
According to the FTC complaint, Dave offered users instant access to cash advances of up to $500, but allegedly rarely offers that advertised maximum amount, with many consumers receiving significantly lower advances.
The FTC also said Dave failed to disclose an “Express Fee,” ranging from $3 to $25, for access to those advances. Consumers who do not pay that fee must wait two to three business days to get the funds. The FTC said the fee isn’t disclosed “until after the sign-up process is complete and the user has given Dave access to their bank account.”
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