Federal Trade Commission Bans Fake Reviews and Testimonials
A recent FTC ruling may protect seniors and their families from deceptive reviews of assisted living facilities and other senior living communities.
Here’s how.
“Fake reviews not only waste people’s time and money but also pollute the marketplace and divert business away from honest competitors.”
It’s no secret that fake reviews clutter many online spaces, especially with the recent rise of AI. However, on Wednesday, the Federal Trade Commission effectively banned fake reviews and online testimonials, allowing agencies to seek civil action against known violators. This rule is intended to curtail the volume of AI-written reviews and those penned by someone who intentionally misrepresents their experience in exchange for money. It will also make it harder for companies to suppress negative reviews.
“Fake reviews not only waste people’s time and money but also pollute the marketplace and divert business away from honest competitors,” FTC Chair Lina Khan said when she weighed in on the ruling in a recent news release. “By strengthening the FTC’s toolkit to fight deceptive advertising, the final rule will protect Americans from getting cheated, put businesses that unlawfully game the system on notice, and promote markets that are fair, honest, and competitive.”
According to The Hill, this ruling will prohibit businesses from doing the following:
- Fake or False Reviews: Creating, selling, or buying reviews that do not disclose that they were generated by artificial intelligence or that do not disclose that they were written by someone who has never actually used the product or falsely purports to have a positive experience.
- Buying Positive or Negative Reviews: Offering users any kind of incentive, including compensation, to write reviews that express a particular sentiment.
- Insider Reviews and Consumer Testimonials: Allowing company insiders to write reviews or disseminate them when they “knew or should have known that the reviews or testimonials were fake or false.”
- Review Suppression & Misuse of Fake Social Media Indicators: Making up false reasons to suppress negative reviews and “selling or buying fake indicators of social media influence, such as followers or views generated by a bot or hijacked account.”
How does this ruling relate to A Place for Mom?
In June of 2024, the Senate Special Committee on Aging launched an investigation into A Place for Mom after allegations that it misled its users about its referral process and discriminated against low-income families. The popular referral service allegedly also fabricated reviews, with former staff members informing The Washington Post that many reviews were outright faked.
For example, A Place for Mom lumped Inspired Living Bonita Springs into the “best of” category based on 2023 consumer reviews. But they failed to mention that a former resident passed away from heat exhaustion after spending more than an hour unattended on the patio in 2022. California-based Pacifica Senior Living was also cited for violations at 23 of its 41 properties. The Post uncovered violations related to medication errors, bed sores, falls, staff misconduct, and exposure to hazards such as infestations by scabies and rats. These discrepancies were not mentioned when Pacifica Senior Living made A Place for Mom’s “Best of Senior Living” lists in 2023 and 2024.
Likewise, a facility in Michigan was cited at 31 of 69 locations that made A Place for Mom’s “Best of Senior Living” 2023 and 2024 lists. One StoryPoint facility boasted 378 five-star reviews as compared to only 4 negative reviews. The Post goes on to note that 37 of the 5-star reviews were all posted on a single day in March 2021.
One daughter of a former resident who passed away at the StoryPoint facility had a lot to say about that.
“That’s not the care that my mom got. That’s not the experience that we had,” said Judy Bottum in an interview with The Post, adding that seeing the positive reviews “brings up a lot of bad memories and frustration.” Her mother, Kathleen, didn’t receive one shower in the month preceding her death, nor did the staff inform the family when Kathleen was nearing her final hours. Sadly, Kathleen died alone.
This recent FTC ruling aims to crack down on false or exaggerated reviews, making it easier for families to find a reputable assisted living facility. The rule will become effective 60 days after the date it’s published in the Federal Register.
More Assisted Living Resources
- Administration for Community Living
- Bob Carlson’s Retirement Watch
- Federal Long-Term Care Insurance Program
- LongTermCare.gov
- National Center for Assisted Living
- National Council on Aging
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Originally published August 16, 2024
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