FTC cracks down on fake reviews—what it means for your customer experience efforts

Published on Sep 17, 2024

<span id="hs_cos_wrapper_name" class="hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_text" style="" data-hs-cos-general-type="meta_field" data-hs-cos-type="text" >FTC cracks down on fake reviews—what it means for your customer experience efforts</span>

Once a CX program is up and running, it’s easy for operators and staff to feel the pressure to drive positive feedback. Often, this pressure comes from the top, with expectations for top-tier customer reviews and feedback. This sometimes tempts businesses to create fake online reviews to meet high expectations and maintain their reputations.

As a result, the Federal Trade Commission (FTC) has rolled out new rules to curb fake online reviews. Restaurants and other businesses trying to deceive the public with bogus guest reviews could now face penalties.

Understanding the FTC's new guidelines

The rule, which will go into effect mid-October following its publishing in the Federal Register, will prohibit restaurants and businesses from engaging in several deceptive practices. This includes paying ghostwriters to leave fake positive reviews or soliciting only favorable feedback. It also bans companies from writing their own reviews and pretending they’re from someone else, encouraging employees, investors, or friends to leave praise without disclosing the connection, and editing reviews on their websites to highlight positives while downplaying negatives.

The issue is real—according to a U.S. PIRG estimate, between 30% and 40% of online reviews are "concocted or are in some way not genuine." FTC Chair Lina M. Khan stated, “Fake reviews not only waste people’s time and money, but also pollute the marketplace and divert business away from honest competitors.”

The FTC is clear: companies need to make sure reviews and endorsements are transparent and honest.

Why you should avoid manipulating customer feedback

When it comes to managing customer feedback, it’s important to maintain authenticity. Attempting to manipulate or skew feedback can have serious repercussions and can undercut your entire CX program. Here’s why sticking to genuine customer insights is the better approach:

Customers will see through it

Manipulating reviews or feedback can quickly backfire. Customers are savvy and can often detect when something seems off or overly positive. Once trust is broken, it's hard to regain, and the damage to your brand's reputation could be significant.

Feedback tends to be positive already

The majority of customer feedback is naturally positive, so there’s no need to artificially amplify the good vibes. Authentic praise from real customers carries far more weight and credibility than anything that’s been tampered with.

There are better ways to boost feedback visibility

Instead of manipulating feedback, focus on strategies to make your existing positive reviews more visible. This could involve highlighting testimonials on your website, sharing customer success stories, or using social proof in marketing campaigns.

Actionable steps for meaningful engagement

To make the most of your customer feedback and ensure your CX strategy is genuinely impactful, focus on analyzing, acting on, and responding to your data in ways that make a positive impact on your customers and financials. Here are some actionable steps to help you maximize the feedback you already have:

Respond to online reviews

Engaging with customers by responding to their reviews shows you’re actively listening and value their input. This simple action can significantly improve customer satisfaction and trust.

Close the loop

Don’t just collect feedback—act on it! Addressing negative experiences quickly and effectively can turn a dissatisfied customer into a loyal advocate. In fact, our data shows customers who have a bad experience that’s satisfactorily resolved tend to be more loyal than those who had a good experience from the start.

Manage the contact center

Use customer feedback to coach and improve your location’s or contact center's performance. By providing targeted training and support, you can enhance the quality of interactions, leading to better customer experiences overall.

Remember—the goal is to create a genuine connection with your customers by using feedback to drive meaningful improvements in your service!

The best way to keep a CX program honest and effective is to remember the core objective to improve and optimize customer experiences. This is why it’s important for those using and participating in your CX program to buy into why you’re doing it. It’s not just to look good, but to know exactly what you need to focus on to have the biggest impact on customer satisfaction. When customers are happy, they're more likely to stick with your brand and recommend it to others.

A well-managed CX program, driven by strong leadership, insights, and clear communication, will drive that loyalty naturally—without needing the FTC to step in.

Stay ahead in the CX industry and ensure your program runs at its best by partnering with SMG. We're here to help you navigate and excel in your customer experience journey.

Josie Gaeckle is a seasoned Customer Experience (CX) executive with over 17 years of industry experience. As the SVP of Client Insights at SMG, Josie leads the charge in Insight development and innovation transforming the way clients interpret and act on their customer and employee feedback results.