The Consumer Financial Protection Bureau (CFPB) said it has issued policy guidance to address potentially illegal practices related to consumer reviews.
“In America, no corporation should be able to silence a customer from posting an honest review online,” CFPB Director Rohit Chopra said. “Corporate disinformation campaigns that suppress legitimate reviews or manufacture fake reviews are not only a threat to free speech and fair competition, they are also illegal.”
The CFPB indicated the guidance ensures customers can write reviews, particularly online, about financial products and services accurately reflecting opinions and experiences.
Business practices related to customer reviews generally deemed unlawful via the Consumer Financial Protection Act include Contractual ‘Gag’ Clauses, noting attempts to silence consumers from posting an online review can undermine fair competition; fake reviews that negatively impact markets if consumers cannot trust that online reviews are legitimate; and Review Suppression or Manipulation amid circumstances in which consumers cannot easily shop and compare products and services when firms engage in practices to limit the posting of negative reviews or manipulate reviews to deceive or confuse consumers.
The initiative stems from the Federal Trade Commission’s (FTC) efforts to deter fake reviews and related fraud across the digital economy. The FTC recently voted to place hundreds of businesses on notice regarding fake reviews and misleading endorsements, potentially resulting in penalties against marketers engaging in such misconduct.