Dealers: Your ‘Customer Reviews’ pages might be in violation

The recent Federal Trade Commission (FTC) rule, finalized on August 14, 2024, introduces stringent guidelines on how businesses, including car dealerships, handle customer reviews. This rule explicitly prohibits businesses from conditioning incentives on the content of online reviews—whether those reviews are positive or negative . This means dealerships can no longer offer discounts, coupons, or any other perks in exchange for a positive review, nor can they suppress or hide negative reviews. The rule also bans the practice of posting fake reviews or paying third parties to write biased positive reviews, actions that could lead to significant legal penalties​ (TCPAWorld). Many dealers believe this is a good strategy to combat a barrage of negative reviews, it is not. It is a very bad shortcut that could bite you in the rear end later.

For car dealerships, this rule presents a new compliance challenge, particularly regarding how they manage their online reputation​ (Federal Trade Commission). Many dealerships highlight positive customer reviews on their websites or social media pages, often neglecting to display negative feedback. According to the FTC, this selective showcasing could be seen as a deceptive practice, especially if it makes it difficult for consumers to find negative reviews​ (TCPAWorld). Even pages that only display positive reviews could potentially violate the new rule if they're found to be misleading consumers about the overall sentiment of customer experiences. Have you looked at your ‘Customer Reviews’ tab on your website recently?

Given the complexity and potential risks involved, it's crucial for car dealerships to reassess their review management strategies​ (Federal Trade Commission). Dealerships that lack a dedicated compliance or brand management professional might find themselves at greater risk of violating these new regulations. To navigate these changes and ensure compliance, dealerships should consider partnering with experts. DigitalCLIQ can provide the necessary guidance and support to ensure your dealership's online presence aligns with the latest FTC rules, protecting your brand and your business from costly penalties​ (TCPAWorld).