The new “Rule” on consumer reviews and testimonials from the United States Federal Trade Commission (FTC) came into effect on October 21, 2024.
This FTC Rule prohibits fake and AI-generated consumer reviews, consumer testimonials, celebrity testimonials, and other types of unfair or deceptive practices involving reviews and testimonials. The Rule aims to protect consumers from harm caused by fake consumer feedback, support honest competition, and enhance trust online.
At JustGamblers’, we remain fully committed to acting in our readers’ best interest, and our business practices align with the FTC’s new rule on fake consumer reviews and testimonials. We take a firm stance against incentives for reviews since genuine feedback is crucial to building trust and safeguarding the iGaming industry.
Statement from the Managing Director for JustGamblers Magnus Boberg:
“Daily, when conducting market research, I come across consumer-relevant resources that use false reviews and testimonials. There’s hardly ever any evidence that an affiliate has real, substantial experience with an online casino or sportsbook. It’s problematic because players and bettors are misled. Unfortunately, it’s easy to manipulate the system through incentivized reviews, fake user-generated content, and bought social media followers and engagement. Affiliates and iGaming operators that employ these tactics are rarely punished and often benefit from them by gaming search algorithms. Competing is more difficult for an independent brand like JustGamblers under such market conditions. This new FTC Rule is a step in the right direction to combat manipulative marketing practices, set the records straight and introduce greater transparency and integrity in the iGaming industry.”
Statement from Head of Content at JustGamblers Patrik Lidin:
“The new FTC Rule on consumer reviews and testimonials doesn’t change how our editorial team conducts reviews or how we allow users to submit testimonials. Hopefully, it will broadly impact the iGaming industry and minimize shady marketing tactics. For our ways of working, we’ll simply disclose our adherence to the new Rules across relevant pages and educate all staff writers based on the key takeaways to reinforce the integrity of our editorial processes.”
The new directive from the FTC contains six key takeaways from platforms such as JustGamblers.com must adhere to:
Fake or False Consumer Reviews, Testimonials, and Celebrity Endorsements
This regulation addresses reviews and testimonials that misrepresent the reviewer’s identity, such as AI-generated fake reviews, or that do not reflect the actual experiences of those providing them. Businesses are prohibited from creating or selling these misleading reviews and testimonials. Furthermore, they cannot buy, procure from company insiders, or disseminate testimonials when they knew or should have known the content was false or fabricated.
Ban on Buying Positive or Negative Reviews
Businesses are explicitly forbidden from offering compensation or incentives conditioned on the writing of consumer reviews that express a specific positive or negative sentiment. This includes any offers with a conditional nature conveyed explicitly or implicitly, ensuring that consumers can provide honest feedback without undue influence.
Disclosure Requirements for Insider Reviews and Testimonials
Reviews and testimonials from company insiders—such as officers or managers—must disclose the giver’s material connection to the business. Additionally, companies must not disseminate testimonials they should have known were written by insiders. Requirements are also set for officers or managers soliciting reviews from immediate relatives or employees, promoting transparency in these interactions.
Misrepresentation of Company-Controlled Review Websites
Businesses are prohibited from misrepresenting that a website or entity they control provides independent reviews or opinions about products or services that include their offerings. This helps maintain the integrity of review platforms and protects consumer trust.
Review Suppression Practices
Companies cannot suppress negative consumer reviews using unfounded legal threats, intimidation, or false public accusations. They are also barred from misrepresenting that the reviews displayed on their website represent all or most of the submitted feedback, particularly when negative reviews have been deliberately hidden.
Misuse of Fake Social Media Indicators
Finally, the sale or purchase of fake indicators of social media influence, such as followers or views generated by bots or hijacked accounts, is prohibited. This applies when the player or bettor knew or should have known that the indicators were fake, ensuring businesses cannot misrepresent their influence for commercial gain.
