FTC tries to police online product reviews but rules are hard to enforce

from Consumer Reports

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The government is starting to go after bloggers and product reviewers who get money or freebies from the companies they're reporting on. They now must disclose that fact. Consumer Reports ShopSmart magazine says it's high time.

In fact, Lifestyle Lift, a chain of cosmetic surgery clinics, was fined $300,000 because its employees published positive reviews and engaged in deceptive commercial practices.

Consumer Reports ShopSmart says that bloggers are another source of suspect reviews. Some get freebies or payments from companies to say positive things about their products.

The Web site Izea.com brags it has received a million product mentions online with paid bloggers. And it says that compensation can come in the form of cash, gift cards, points, products, or services.

Some warning signs of suspect reviews:
--No mention of personal experience with the item.
--The reviewer lists only the pros and none of the cons.
--Also be on the lookout for sponsorship disclosures, although they can be hard to spot.

Another tip: Don't stop at the first two or three reviews. At least one site, Yelp.com, says it moves a positive review to the top spot if the business pays for it. Bottom line—be skeptical. Before you buy, check lots of sources.

Consumer Reports ShopSmart says the Federal Trade Commission's new regulations requiring disclosure of financial arrangements is an important step. The regulations haven't been updated in nearly 30 years. But with so many bloggers and product reviewers out there, the new rules will be hard to enforce. So it's still buyer beware.

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