WASHINGTON, D.C. — The Federal Trade Commission (FTC) has leveled charges against Sitejabber, an AI-powered consumer review platform, accusing the company of misleading consumers by falsely representing that its reviews and ratings were generated by actual customer experiences. The complaint alleges that Sitejabber artificially inflated average ratings and review counts, impacting consumer perceptions and potentially influencing purchasing decisions.
According to the FTC’s findings, Sitejabber, operating under the corporate name GGL Projects, Inc., engaged in deceptive practices by collecting consumer ratings and reviews at the point of sale. Customers were prompted to rate their “overall shopping experience so far” immediately after purchase, before receiving or using the products or services. This practice resulted in skewed feedback, which Sitejabber then used to boost the average ratings and review counts for its business clients. These inflated metrics were prominently displayed not only on Sitejabber’s platform but also in search results on platforms like Google, falsely suggesting high customer satisfaction.
The FTC further alleges that Sitejabber facilitated similar deceptions by providing its clients with tools to collect pre-fulfillment product reviews. Customers were asked for their reasons for choosing a product and to rate it on a 5-star scale at the time of purchase. These ratings, collected before any product delivery, were made available to clients to publish as actual product reviews on their own websites, misleadingly portraying them as genuine post-experience evaluations.
In response to these findings, the FTC has proposed an order that would prohibit Sitejabber from making misrepresentations about customer reviews and ratings. The proposed order specifically bars the company from falsely claiming that ratings reflect the views of consumers who have actually received or experienced the products or services. Furthermore, Sitejabber is forbidden from enabling others to make such misrepresentations, ensuring that reviews collected at the time of purchase are not misrepresented as post-use feedback.
Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, emphasized the importance of this enforcement action, stating that platforms are not at liberty to mislead consumers with deceptive reviews. This case aligns with the FTC’s broader efforts to curtail fake reviews and testimonials, highlighting the agency’s commitment to maintaining transparency and honesty in the digital review ecosystem.
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