Published: October 2022

FTC and DOJ must rein in fraudulent review brokers to protect consumers and honest businesses

Consumer Action and allies asked the Federal Trade Commission and the Department of Justice to use their authority to crack down on reviews brokers, which sell fake reviews of products and services. The fraud results in significant economic harm to consumers and honest businesses and a deterioration of trust in online reviews.

Every day, millions of consumers make buying decisions based on online reviews of products and services. However, the rapid rise in fraudulent reviews sold by organized review brokers is eroding consumer trust. Consumer Action joined allies in asking the Federal Trade Commission and the U.S. Department of Justice to use the agencies’ authority to crack down on review brokers—companies that facilitate buying and selling fake reviews. The letter sent by the group of advocates points out that fraudulent reviews cost consumers an estimated $152 billion globally in 2021, with $28 billion in losses from the U.S. economy alone. Fake reviews also result in consumers purchasing lower quality and potentially unsafe products. And they harm honest businesses, since sellers and service providers that do not use fake reviews are likely to appear lower in online marketplace listings and search engine results. 

Lead Organization

National Consumers League

More Information

Click here to read the coalition letter.

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