AI review platform Sitejabber charged with deceiving US consumers
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Occurred: November 2024
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The Federal Trade Commission (FTC) charged AI-enabled consumer review platform Sitejabber with deceiving US consumers by deliberately misrepresenting the authenticity of its ratings and reviews.ย
What happened
What happened
The FTC filed a complaint against Sitejabber for allegedly inflating customer ratings and review counts by collecting feedback from consumers at the point of sale - before they had the chance to experience the products or services they purchased.
This practice misled consumers into believing that the reviews reflected actual customer experiences with the products rather than just their shopping experience.
For instance, a furniture retailer on Sitejabber displayed an impressive average rating of 4.72 stars based on over 83,000 reviews. But fewer than 1 percent of the reviews came from verified purchasers who had used the products.
Why it happened
Why it happened
The FTC highlighted that Sitejabber solicited feedback immediately after purchase, asking customers to rate their "overall shopping experience so far" - which did not accurately represent their satisfaction with the product itself.ย
The approach resulted in inflated ratings that were seen to mislead potential customers about the quality of a business's offerings.
Sitejabber also reportedly concealed important information about how ratings were generated, requiring users to hover over review counts and navigate through additional details to discover that many ratings were based solely on checkout experiences.
What it means
What it means
The FTC's enforcement action highlights the widespread use of misleading marketing practices amongst companies developing or using AI, often to boost valuations and leadership compensation packages.ย
It also signals a broader crackdown by the regulator on such practices.ย
The FTC's proposed order would prevent Sitejabber from making future misrepresentations regarding consumer ratings and reviews.
If Sitejabber violates the order, it could face civil penalties of up to USD 51,744 per violation.
System ๐ค
System ๐ค
Sitejabber ๐
Operator:
Developer: GGL Projects
Country: USA
Sector: Business/professional services
Purpose: Inflate ratings and review counts
Technology: Machine learning
Issue: Ethics/values
Regulation โ๏ธ
Regulation โ๏ธ
Legal, regulatory ๐ฉ๐ผโโ๏ธ
Legal, regulatory ๐ฉ๐ผโโ๏ธ
Federal Trade Commission. Sitejabber complaint (pdf)
Federal Trade Commission. Sitejabber decision and order (pdf)
Federal Trade Commission. FTC Order Against AI-Enabled Review Platform Sitejabber Will Ensure Consumers Get Truthful and Accurate Reviews
Page info
Type: Incident
Published: November 2024
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