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FTC’s new rule promises to eliminate fake reviews and testimonials

Amazon recently expanded sellers’ options in processing returns. While we know it’s rooted in good intentions, some might question when the company will expand its efforts in reducing returns on the customer side (or if it ever will).

We do hope that comes sooner than later (wishing won’t hurt, right?). But if you haven’t heard, there are new changes that can help you combat fake reviews and manage your inventory. Read on to know them! 

  • FTC’s new rule against fake reviews 🥊
  • The perfect retail partner 🤝
  • FBA Returnless Resolutions ⛔

HOT TOPIC

Fake reviews have been messing up the game for honest Amazon sellers, making it tough for real products to shine. But the Federal Trade Commission (FTC) is tougher as it introduced a new rule on August 14 to stop fake reviews and testimonials!

📜 What does this new rule entail?

  • No fake reviews are allowed, including AI-generated reviews and those written by people who didn’t actually use the product. Selling or buying fake reviews is STRICTLY PROHIBITED, so make sure you filter those out.
  • Incentivized reviews are out. Offering cash, discounts, or freebies in exchange for positive (or negative) reviews is now formally against the law. 
  • Transparency is important. If someone connected to your company (an employee or family member) writes a review, it must be clearly disclosed. Hiding these connections is now a violation. 🔍
  • Ensure honest review practices. You can’t use threats or false claims to suppress negative reviews. You also can’t mislead customers by hiding bad feedback.
  • Promote social media clarity. Buying fake social media followers or likes to boost your product’s image is also not allowed.

🧑‍⚖️ Honesty is the best policylaw

With the FTC's new rule, the days of fake reviews are numbered. This is your chance to build real trust with your customers through authentic, insightful feedback.

The rule will take effect on October 13, 2024. The FTC emphasized that violators will be penalized with serious fines, so make sure you’re playing by the book.

TOGETHER WITH WALMART MARKETPLACE

This giant retailer is the perfect ecommerce partner—and it’s not Amazon

When your business is backed by one of the most trusted names in retail, great things can happen 

Watch what Big Dot of Happiness, a party supply business in Menomonie, WI, attributes to its success on Walmart Marketplace. 

The woman-founded party supply company found grand success on Walmart.com. According to Jill Schultz, Dir. Merchandising and Inventory, “Walmart has connected us with millions of customers that we would not have been able to reach otherwise.” and bringing joy to millions of customers during their times of celebration.  

Are you our next seller success story?  

Join today and tap into:  

  • a network of millions of customers 
  • powerful, easy-to-use solutions designed for growth 
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BITES OF THE WEEK

AMAZON NEWS

Is the FBA Returnless Resolutions program a friend or a foe?

ICYMI, Amazon recently launched FBA Returnless Resolutions, a program that allows sellers to refund customers without the hassle of shipping the order back. Basically, it offers a returnless refund option to shoppers.

But what does this offer to sellers?

⚖️ An article by Carbon6 outlines the new program’s pros and cons and what it means for sellers moving forward.

But first, what’s FBA Returnless Resolutions?

The program promises lower returns-related fees and a streamlined return management process. However, it’s limited to eligible products, which DO NOT include:

  • dangerous goods, 
  • heavy and bulky items, and 
  • Items with an average sales price greater than $75

You can choose which of your eligible products will have the returnless option based on the following criteria:

  • Item value. You can select lower-cost items whose return shipping cost is higher.
  • Product category. Hard-to-resell products like cosmetics and consumables are the best category for returnless refunds.
  • Reason for return. Unless you want to discover how it was damaged for quality control, it’s more cost-effective to issue a refund.
  • SKU. You can also just specify which products apply.

📣 Sellers’ thoughts

Returns have always negatively impacted sellers. This past June, Amazon started charging a returns processing fee for high-return rate products.

  • While the new program addresses the fee issue, many sellers are concerned with return fraud, especially if Amazon bots are left to decide which return request to accept. 
  • One seller made an interesting and valid argument—that returnless returns shouldn’t count against the seller’s return metrics or account health.

What do you think of FBA Returnless Resolutions? Is it a friend or a foe?

Author : SellerBites
Faith began working on SellerBites in 2021, a weekly newsletter that provides sellers with the latest news and updates in FBA. With first-hand experience in managing various seller and vendor accounts, she understands what sellers face on this platform. Her background led to the conception of SellerBites, which main goal is to help people become better, more informed entrepreneurs in the Amazon marketplace.
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