The Consumer Financial Protection Bureau (CFPB) on Tuesday (March 22) unveiled policy guidance on “potentially illegal practices related to consumer reviews,” saying it “seeks to ensure that customers can write reviews, particularly ones posted online, about financial products and services that accurately reflect their opinions and experiences.”
CFPB’s notes that “practices such as posting fake reviews or inserting clauses that forbid a customer from publishing an honest review may violate the Consumer Financial Protection Act,” according to the agency press release.
“In America, no corporation should be able to silence a customer from posting an honest review online,” said CFPB Director Rohit Chopra in the CFPB announcement. “Corporate disinformation campaigns that suppress legitimate reviews or manufacture fake reviews are not only a threat to free speech and fair competition, they are also illegal.”
The new CFPB mandate, with guidance from the Consumer Financial Protection Act, forbids contractual “gags” that attempt to keep consumers from posting online reviews; fake reviews and review suppression or manipulation that limit negative reviews or manipulate reviews to trick or confuse consumers.
CFPB’s guidance is related to the Federal Trade Commission’s efforts to deter fake reviews and related fraud across the digital economy, the CFPB press release said. The FTC recently voted to warn hundreds of businesses because of fake reviews and misleading endorsements, which can lead to penalties.
Related: 70% of BNPL CFPB Complaints Are Lodged Against One Provider
Meanwhile, the CFPB will close its open period for comments on its investigation into the buy now, pay later (BNPL) market Friday (March 25). In December, CFPB asked five BNPL players — Affirm, Afterpay, Klarna, PayPal and Zip — to provide data to clarify the risks and benefits of this product to consumers.
Some consumer advocate reports show that the number of complaints against BNPL companies has risen over the last year, as the volume of BNPL transactions has gone up. Many of those complaints focus on service improvements rather than a market failure that regulation should address.
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