August 21, 2024 – Today, the Travel Technology Association (Travel Tech) released the following statement following the release of the Federal Trade Commission’s (FTC) final rule prohibiting fake and deceptive reviews:
“Travel Tech is pleased the FTC adopted our recommendation regarding the “knew or should have known” standard for review hosting platforms. Doing so reflects that the rule is targeting bad actors that intend to commit fraud through fake reviews,” said Laura Chadwick, President and CEO of the Travel Technology Association.
“The integrity of reviews is essential to maintaining the trust and confidence of customers as they plan their travel near and far. Travel Tech members invest significant resources in robust trust and safety operations to protect the reliability of the reviews appearing on their platforms.”
Last year, Travel Tech submitted comments in response to the FTC’s then-proposed rule, urging the Commission to revise its “know or could have known” standard to avoid unduly burdening review platforms. In the Final Rule, the Commission wrote that “…the most appropriate standard for imposing liability under § 465.2(b)…is the “knew or should have known standard.” As discussed above, those paragraphs were not intended to apply to consumer review hosting and § 465.2(d)(2) now contains an explicit exemption for consumer review hosting.”
The FTC’s Final Rule also prohibits the sale or purchase of fake or deceptive reviews and allows the agency to seek civil penalties against knowing violators. It bans company-controlled review websites, review suppression, insider reviews and consumer testimonials, and misuse of fake social media indicators, among other provisions.
Travel Tech will host a free industry webinar, “#1 Five Star Webinar: Unpacking the New FTC Rule on Fake and Deceptive Reviews” on Tuesday, September 17th featuring attorneys Stephen Conley, Duane Pozza, and Kathleen Scott of Wiley. Register here.
###
The Travel Technology Association (Travel Tech) empowers traveler choice by advocating for public policy that promotes marketplace transparency and competition. Travel Tech represents travel technology innovators ranging from dynamic startups, small, and midsize businesses to leading online travel agencies, metasearch engines, short-term rental platforms, global distribution systems, and travel management companies.
To schedule an interview with a Travel Tech spokesperson, contact Bradford Williamson of Glen Echo Group at 202.870.3234 or bwilliamson@glenechogroup.com.
