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FTC cracking down on fake online reviews

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(CBS 58) -- The Federal Trade Commission is cracking down on companies that pay for fake online reviews. 

The FTC filed the first case challenging the paid review practice against a company called "Cure Encapsulations." It's accused of buying fake reviews to inflate its Amazon rating. 

The Better Business Bureau says this is a good first step but consumers still need to be cautious when relying on reviews. 

"Some of these businesses that operate the fake review mills are overseas. Some of them operate kind of shadowy, so it's not like you can look in the yellow pages and find these businesses that do it, but it would give law enforcement a leg up in trying to go after them," says Jim Temmer with the Better Business Bureau - Wisconsin. 

An Amazon spokesperson issued the following statement,

"We welcome the FTC’s work in this area. Amazon invests significant resources to protect the integrity of reviews in our store because we know customers value the insights and experiences shared by fellow shoppers. Even one inauthentic review is one too many. We have clear participation guidelines for both reviewers and selling partners and we suspend, ban, and take legal action on those who violate our policies."
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