The FTC alleges that Riley told employees to write reviews that were “very enthusiastic without looking like a plant” and to also review other nonskincare products to seem genuine. Riley also allegedly told staffers to “dislike” negative reviews in order to get them hidden or bounced off the site.
“After enough dislikes, it is removed,” she allegedly wrote. “This directly translates to sales!!”
The FTC concluded that “numerous reviews of Sunday Riley brand products on the Sephora website did not reflect the independent experiences or opinions of impartial ordinary users of the products because they were written by Sunday Riley and her employees.”
Without admitting to any wrongdoing as part of the settlement, the company has agreed to never review its own products online while pretending to be a normal, unbiased user of the products. It also must instruct its employees to never review a Sunday Riley product online without disclosing they are biased in favor of the company.
The agreement, which will be final in 30 days, is meant to “ensure the respondents do not engage in similar allegedly illegal conduct in the future,” according to an FTC statement.
A commissioner of the FTC, however, thinks the agreement is too lenient. In an official dissent, FTC Commissioner Chopra said the agreement “will not deter other firms from engaging in fake review fraud, which is a growing problem online.”
Chopra added that “this scheme was ongoing for almost two years, and Sunday Riley and her company expected it would yield substantial benefits.”
“Rather than relying on satisfied customers to generate real buzz about her products, [Riley] directed her employees to write glowing reviews and bury negative ones, while offering detailed instructions on how to avoid detection,” Chopra said.
Despite this, Chopra said the settlement contains “no redress, no disgorgement of ill-gotten gains, no notice to consumers, and no admission of wrongdoing” by either Riley or her company. Chopra added he thinks that because of that, other companies will not be dissuaded from faking reviews themselves.
“This settlement sends the wrong message to the marketplace,” he wrote. “Dishonest firms may come to conclude that posting fake reviews is a viable strategy, given the proposed outcome here. Honest firms, who are the biggest victims of this fraud, may be wondering if they are losing out by following the law. Consumers may come to lack confidence that reviews are truthful.”
Chopra concluded that the FTC needs to do better in cracking down on fake reviews online for the good of maintaining a fair marketplace.
“We should not fall behind our peers in tackling this problem,” he said.
This content was originally published here.