Breaking Down the New FTC Ruling on Fake Reviews & Testimonials

On August 14, 2024, the Federal Trade Commission (FTC) introduced a rule banning fake reviews and misleading testimonials to improve marketing transparency and authenticity.

As a healthcare organization, you already prioritize ethical practices and HIPAA compliance due to the nature of your business. It’s important to adapt to these new changes to maintain patient trust and remain competitive.

Here’s everything you need to know about the ruling, its impact on healthcare marketing, and how to ensure you’re in compliance before it goes into effect on October 13, 2024.

Key Aspects of the FTC Ruling

The Scope

1. Fake or false reviews and testimonials
   Do not create, buy, or share fake or false reviews or testimonials that misrepresent the experience or identity of the reviewer. The rule also prohibits using AI-generated content for reviews and testimonials.
2. Incentivized reviews and testimonials
   Avoid providing compensation or incentives to consumers in exchange for positive or negative reviews.
3. Insider reviews and testimonials
   Disclose when immediate relatives or employees make reviews and testimonials on your behalf.
4. Company-controlled review websites
   Avoid misrepresenting a website or entity that you control as an independent review source.
5. Review suppression
   Do not use threats or false claims to suppress negative reviews. Avoid misrepresenting that reviews published on your website are representative of all or most of your reviews, especially when they have been hand-selected due to a rating or overall sentiment.
6. Fake social media indicators
   Avoid buying or selling fake social media metrics generated by a bot or hijacked account. (e.g., followers or views).

The Consequences

To discourage deceptive practices and promote transparency in marketing, anyone caught using fake or false reviews, undisclosed insider testimonials, or manipulative social media endorsements face hefty penalties of up to $50,120 per violation.

Impact on Healthcare Marketing

The new FTC ruling on fake reviews has significant implications for your healthcare organization. When followed, it supports improved online visibility, patient trust, and more conversions by prioritizing authenticity, maintaining transparency, and proactively managing your online reputation.

If your organization uses reputation management software (RMS) to manage patient reviews, you’ll want to audit your review practices and ensure they are authentic and genuine.

Steps for Compliance

• Update RMS Policies
  Reach out to your RMS provider and adjust policies as needed to ensure compliance with the new rule.
• Verify Authenticity and Disclose Connections
  Regularly audit your online reviews to ensure they are genuine, accurately represent patient experiences, and disclose any connections or relationships.
• Establish a Review Policy and Monitor Reviews Regularly
  Develop a clear review collection and management policy, establish processes for verifying review authenticity, and remove those violating the FTC ruling.
• Train Staff
  Educate and train any staff involved in review management on ethical review practices, ensuring they understand the potential consequences.

Adapting your RMS policy and internal processes to meet these standards is essential for building patient trust and avoiding penalties.

Key Takeaway

The FTC ruling on fake reviews is a significant step toward protecting consumers from deceptive review practices. What’s more, with AI’s rapid advancement and integration into nearly every business practice, ensuring these technologies adhere to these regulations is crucial.

Updating your RMS and internal review policies and training staff to align with this ruling will help your business avoid costly penalties, strengthen your online reputation, and keep your online reviews authentic.