The Consumer Financial Protection Bureau issued policy guidance regarding potentially illegal practices related to consumer reviews.
New Guidance: The CFPB’s guidance describes certain business practices related to customer reviews that are generally unlawful under the Consumer Financial Protection Act, including:
- Contractual “Gag” Clauses: Attempting to silence consumers from posting an online review.
- Fake Reviews: Laundering fake reviews to improve ratings.
- Review Suppression or Manipulation: Limiting the posting of negative reviews or manipulating reviews to trick or confuse consumers.
More: The CFPB said its effort is related to the Federal Trade Commission’s recent vote to put hundreds of businesses on notice about fake reviews and misleading endorsements. It encouraged banks to ensure their customer review practices comply with all applicable laws, including the CFPA.