The Federal Trade Commission has issued a final consent order against Sitejabber, an AI-enabled consumer review platform provider, for misleading consumers. The company falsely claimed that its published ratings and reviews were from customers with experience with the reviewed products or services, thereby artificially boosting average ratings and review counts. According to the FTC’s complaint from November 2024, Sitejabber solicited ratings and reviews from consumers at the point of sale for its online business clients before the consumers received or used the products or services.
These preemptively collected ratings and reviews were then used to misleadingly enhance the average ratings and review counts for its clients on the review platform. These inflated ratings and review counts were also displayed on Google and other search engines. The FTC further contends that Sitejabber supplied its clients with pre-fulfillment product ratings and reviews, enabling them to falsely represent that the feedback came from customers who had received their products.
Key Takeaways
- FTC’s Allegations Against Sitejabber: The FTC accused Sitejabber of deceptive practices by misrepresenting point-of-sale reviews as post-purchase testimonials, leading to inflated ratings and misleading consumer perceptions. These reviews were included in overall ratings without clear disclosure, violating Section 5(a) of the FTC Act.
- Sitejabber’s Practices and FTC Concerns: The “Instant Feedback Product Reviews” and “Instant Feedback Surveys” collected feedback immediately after purchase, before customers experienced the product or service. These reviews inflated businesses’ ratings, contributing to consumer misinformation and deceptive marketing practices.
- FTC’s Final Consent Order: Sitejabber is now prohibited from misrepresenting or assisting others in misrepresenting ratings or reviews, particularly those collected before customers receive or use products or services. This reflects the FTC’s broader efforts to address deceptive practices in online reviews and AI-driven technologies.
- Sitejabber’s Response and Regulatory Implications: Sitejabber updated its practices in late 2023 to address FTC concerns and distinguish point-of-sale reviews. The case highlights the increasing regulatory focus on transparency in AI-driven consumer platforms, signaling potential scrutiny for similar practices across the industry.
FTC Finalizes Action Against Sitejabber for Deceptive Review Practices
Image source
Just as we welcomed the new year, Sitejabber, an AI-driven consumer review platform, received a final consent order from the Federal Trade Commission (FTC) for deceptive practices involving misrepresenting customer reviews and ratings.
Established as a platform for consumers to share reviews and ratings of various businesses and services, Sitejabber’s main USP is to enhance transparency and assist potential customers in making informed decisions when buying any product or service. The platform further positions itself as a reliable source of authentic consumer feedback by using artificial intelligence in the center to collect and display user-generated content.
In November 2024, the FTC alleged that Sitejabber engaged in deceptive practices by collecting ratings and reviews from consumers at the point of purchase — before they had received or experienced the products or services. The FTC has identified two problematic practices used by Sitejabber: “Instant Feedback Product Reviews” and “Instant Feedback Surveys.”
For the Instant Feedback Surveys, a pop-up would appear on the order confirmation page immediately after a customer completes the online checkout process, prompting the customer to rate their shopping experience so far on a 5-star scale. Following the rating, customers were asked to describe their shopping experience briefly. This feedback was then posted as a merchant review on the business’s profile on Sitejabber.com, and the ratings contributed to the overall star rating displayed for that business.
Sitejabber failed to disclose that these were point-of-sale reviews or that they were included in the business’s overall rating on the site. This lack of transparency led consumers to believe that the ratings and reviews came from customers who had fully experienced the product or service. As a result, these reviews significantly inflated the companies’ total review counts and overall ratings. In some instances, less than 1% of these reviews came from verified purchasers, and without these instant reviews, the ratings could be more than two stars lower. These exaggerated ratings and review counts also appeared in Google and other search engine results.
The Instant Feedback Product Reviews functioned similarly, with an automated survey appearing at the point of sale. It asked customers for specific feedback on why they chose the product, alongside a 5-star rating system and a text box for comments. Sitejabber compiled this feedback into product-specific ratings and reviews under a “Products” tab on the clients’ Sitejabber profiles. The company also offered clients widgets to publish these reviews directly on their websites as product reviews and ratings.
These product-specific ratings, displayed in Google’s paid product search results, did not indicate that they might include reviews collected before the customer had received the product.
The FTC claimed that the actions of Sitejabber violated Section 5 (a) of the Federal Trade Commission Act, 15 U.S. Code § 45. Interestingly, the FTC did not accuse Sitejabber of breaching the Rule on the Use of Consumer Reviews and Testimonials (16 CFR § 465), which bars businesses from producing or selling consumer reviews that falsely claim the reviewer has used or experienced the product, service, or business. This may be because Sitejabber did not directly create or sell these reviews but instead facilitated their collection through its platform from consumers who had yet received their products.
FTC chose not to target any of Sitejabber’s clients, even though the Rule also prevents businesses from buying or spreading reviews that misrepresent a reviewer’s experience with a product. It is possible that Sitejabber or its clients could argue that their actions were covered by exemptions under 16 CFR § 465.2 (d), which allows for general review solicitations or merely hosting reviews.
Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, emphasized that the agency remains committed to combating deceptive practices within the review ecosystem. This suggests that even activities not strictly violating the Rule could still face scrutiny. Levine’s statement underlines the FTC’s intent to actively pursue deceptive review practices, highlighting their ongoing efforts to maintain integrity in consumer reviews and testimonials.
The FTC’s complaint highlighted that Sitejabber’s practices deceived consumers and provided businesses with tools to misrepresent customer feedback. By offering pre-fulfillment product ratings and reviews, Sitejabber enabled its clients to falsely present these as genuine post-experience testimonials, further perpetuating misinformation in the marketplace.
Now, according to a new release posted on 3rd January, the FTC’s final consent order prohibits Sitejabber from:
- Misrepresenting or assisting others in misrepresenting any ratings, average ratings, or reviews it collects, moderates, or displays.
- Providing others with the means to misrepresent that ratings or reviews collected at the time of purchase are from consumers who have received or had the opportunity to experience the product or service.
The consent decree was issued concurrently with the FTC’s unanimous decision, made by its commissioners with a 5-0 vote, to file a complaint and propose an order against accessiBe. The company was accused of falsely claiming that its AI-driven web accessibility tool could ensure compliance with the Web Content Accessibility Guidelines (WCAG) for individuals with disabilities. This action reflects the FTC’s intensified bipartisan examination of AI technologies, a trend expected to persist with the incoming administration.
Image source
In response to the FTC’s allegations, Sitejabber addressed the FTC’s claims on its website in November, explaining that the issues raised were connected to how point-of-sale reviews were shown before modifications were made in early 2024. Sitejabber acknowledged that these reviews reflect genuine customer feedback. Following the FTC’s introduction of prospective new regulations and updated guidelines in June 2023, which suggested such reviews could be misleading, Sitejabber adjusted its practices by the end of 2023 to distinguish and more clearly mark these reviews.
In their November statement, Sitejabber expressed disagreement with the FTC’s suggestions about the intent and consequences of the allegations but affirmed their commitment to enhancing transparency and oversight in review practices. They decided to settle because the primary concerns of the FTC had been resolved through prior updates, and the settlement did not require significant changes to their operations nor imposed any civil penalties.
The FTC’s action against Sitejabber underscores the agency’s commitment to combating deceptive practices in the online review ecosystem. With the rise of AI-generated content, ensuring the authenticity of consumer reviews has become increasingly challenging. The FTC’s enforcement warns other platforms and businesses that misleading consumers through fabricated or manipulated reviews will not be tolerated.
About Sitejabber
Sitejabber, founded in 2007 by Michael Lai, Jeremy Gin, and Rodney Gin, is an AI-powered platform enabling consumers to read and write reviews about businesses across various industries. Often referred to as “the Yelp for websites and online businesses,” Sitejabber facilitates informed purchasing decisions by connecting buyers with quality businesses. The platform has garnered recognition from publications such as The New York Times and PC Magazine for promoting online transparency and consumer protection.
In 2023, Sitejabber rebranded its reputation management platform as Jabio, offering businesses a comprehensive suite of AI-driven tools to collect, monitor, and distribute reviews across multiple sites and channels. This rebranding aimed to distinguish the business-facing platform from the consumer review site, enhancing the company’s ability to effectively support businesses in managing their online reputations. Jabio’s features include automated review requests, marketing tools, and social media sharing capabilities, enabling companies to amplify their reach, reputation, and revenues.
Conclusion
The FTC’s final order against Sitejabber is a significant reminder of the importance of transparency in online consumer reviews. By misleadingly representing ratings and reviews collected before customers could experience products, Sitejabber violated consumer trust and distorted the online review ecosystem.
Although Sitejabber has adjusted its practices in response to the FTC’s concerns, this case highlights the growing scrutiny of AI-driven platforms and their role in shaping consumer perceptions. As the FTC continues to focus on deceptive practices, businesses, and review platforms must prioritize authenticity to maintain consumer confidence and compliance with regulations.
