In an ever more competitive online marketplace in which reviews can make or break a company, the continuing presence of fake online reviews is a serious development worth examining. Fake reviews may be positive, promoting a business in order to drive sales, or negative, attacking a business in order to harm it. Notably, various e-commerce sites adjust rates they charge to list products with them based on the review status of the listed company. Fake reviews have potentially dire consequences for businesses that maintain a digital presence, especially emerging FinTechs and other early-stage companies sensitive to costs. For these young companies, increased costs from combating fake reviews could impact their bottom lines and raise uncomfortable questions during financing rounds, possibly resulting in fewer investors and lower overall investment. Consumer feedback further remains a strong area of focus for federal and state regulators, who perceive such feedback as a valuable tool in informing their consumer protection duties. Fake online reviews can thus attract regulatory scrutiny and become the driver for the initiation of regulatory investigation. Potential enforcement costs imposed by regulators, litigation costs imposed by competitors, reputational damage, heightened customer acquisition costs, and lost or diminished investment collectively serve as potent reminders of the power of fake online reviews and the need for businesses to maintain protocols to identify, address, and mitigate their impact. published without privilege or authorisation to a third party; causing special harm or constituting defamation per se (with respect to a handful of enumerated instances, including any statement which concerns a person in his or her trade or business and tends to injure him or her). Fake online reviews may satisfy these elements, exposing the reviewer to liability and offering the injured party some relief. Assuming harm or defamation per se can be shown, fake negative reviews may be most vulnerable to defamation claims since they would likely be false statements, willingly made without authorisation. Fake review practices involving an insured depository institution may be subject to further exposure to federal enforcement actions. Under Section 8 of the Federal Deposit Insurance Act of 1950 ('FDI Act'), any insured depository institution or institution-affiliated party10 that violates any law or regulation may be required by the insured depository institution's primary banking regulator to forfeit and pay a civil penalty of not more than $5,000 for each day during which the violation continues. For example, an FDIC-insured bank that facilitates the publishing of fake reviews against a FinTech competitor may be found to have engaged in a UDA(A)P violation, and could consequently be subject to further exposure under Section 8 of the FDI Act. Civil money penalties under Section 8 can escalate depending on the seriousness of violations, up to a maximum of $1,000,000 per day. While legal and regulatory remedies may be available to combat fake reviews, they are likely to be slow and costly, whereas reviews often appear quickly and can have immediately-felt and long-lasting impacts on a company's reputation. Companies that could be impacted by fake reviews - either through negative, fake reviews targeting their products or by a competitor or governmental agency finding that they are in some way causing fake reviews to be created to promote their own products or target competitors' products - might consider how to craft a risk management program that addresses the rise of fake reviews. For example, businesses might consider implementing and maintaining policies and procedures designed to identify fake reviews and outline potential responses to mitigate their impact. In addition, companies might consider designating a specific individual, such as a Chief Information Security Officer or Chief Marketing Officer, to oversee such policies and procedures. When considering potential responses to fake reviews, businesses might consider whether to address them publicly in order to better control any ensuing negative publicity. Businesses may also be well served to consider whether it is worthwhile to understand the available legal remedies and how to communicate with any relevant regulators regarding fake reviews. 5. Cal. Bus. & Prof. Code §17536(a); §17534: 'Any person, firm, corporation, partnership or association or any employee or agent thereof who violates [the FAL] is guilty of a misdemeanor'. The article is reproduced with permission from Data Guidance . For further information please visit https://www.dataguidance.com/opinion/usa-fake-online-reviews-and-considerations-fintech designer bags cyber monday