Washington
Bogus online reviews targeted by US regulators
WASHINGTON (AP) — Federal regulators are looking to crack down on fake reviews and other deceptive internet practices.
The Federal Trade Commission proposed a new rule Friday that would ban paying for reviews, suppressing honest reviews, selling fake social media engagement and more. Businesses would also be prohibited from running company-controlled websites that claim to be independent, and other deceptive practices like "review hijacking," which makes reviews for one product appear like they were written for significantly different ones.
If the proposed rule is approved, following a 60-day public comment period, violators could face hefty penalties.
"Our proposed rule on fake reviews shows that we're using all available means to attack deceptive advertising in the digital age," Samuel Levine, director of the FTC's Bureau of Consumer Protection, said in a statement. "The rule would trigger civil penalties for violators and should help level the playing field for honest companies."
In Friday's notice to proposed rulemaking, the FTC noted that it already considers fake reviews and other deceptive actions to be unlawful — but that the new bans "may increase deterrence against these practices," allow for civil penalties and help get financial compensation to victims, the agency said.
Estimates about the portion of reviews online that are fake range from 4% to more than 30%, according to researchers at the University of Southern California, Los Angeles' Anderson School of Management. According to 2021 numbers from the World Economic Forum and CHEQ, fake reviews impact some $152 billion in global spending each year.
In addition to FTC efforts to tackle fake reviews in the past — which include multi-million-dollar settlements with online retailers — more companies say they are now taking deceptive online practices seriously.
In July of last year, for example, Amazon filed a lawsuit against administrators of more than 10,000 Facebook groups it accused of coordinating fake reviews in exchange for money or free products — and on Tuesday, the company announced four additional lawsuits "against fraudsters attempting to mislead Amazon customers and harm Amazon selling partners by facilitating fake reviews."
Earlier this month, Google announced legal action against a "bad actor" who posted over 350 fraudulent Google Business profiles and tried to boost them with more than 14,000 fake reviews, the company said.
The FTC's Friday proposal follows the agency's November announcement to explore rulemaking.
Ohio
Ex-GOP chair gets 5 years for role in $60M bribery scheme
CINCINNATI (AP) — Ohio lobbyist Matt Borges was sentenced Friday to five years in prison and three years of probation for his part in the largest corruption scandal in Ohio history, a sentence the former Ohio Republican Party chair vowed to appeal.
The punishment by U.S. District Judge Timothy Black came just a day after former Republican Ohio House Speaker Larry Householder, who was convicted of racketeering alongside Borges earlier this year, was sentenced to 20 years. Householder also plans to fight his sentence.
Borges had asked to be sentenced to 12 months, while prosecutors recommended 5 to 8 years.
Following sentencing, Borges was immediately taken into custody and escorted from the courtroom in handcuffs.
A jury found the pair guilty in March, determining that Householder orchestrated and Borges participated in a $60 million bribery scheme secretly funded by Akron-based FirstEnergy Corp. to secure Householder’s power, elect his allies and pass and defend a $1 billion nuclear plant bailout. Specifically, Borges was found to have offered a bribe in exchange for inside information on a referendum campaign aimed at repealing the bailout law.
During the trial, Borges sought to distance himself from Householder — once one of Ohio’s most powerful Republican politicians — with his defense team highlighting his absence from meetings held by Householder’s allies and Borges quipping audibly in the courtroom that he didn’t even like the man.
After Householder confirmed on the stand during their trial that Borges was not among his confidantes, the younger Republican opted against testifying on his own behalf.
But it mattered during sentencing that Borges was convicted years before in an earlier state government pay-to-play scandal. Borges, who served as a campaign staffer and chief of staff to then-Republican State Treasurer Joe Deters, pleaded guilty in 2004 to one count of improper use of a public office. He was fined $1,000, but avoided jail time of up to six months.
Borges was charged with giving 10 brokers who had contributed to Deters’ campaign fund an advantage in getting contracts with the office of the treasurer — Ohio’s chief investment officer. A Deters fundraiser and a lobbyist who served as a go-between to the preferential treatment also were convicted.
Though Deters was never directly connected to the scheme, it stymied his career in state politics for almost two decades. That was, until GOP Gov. Mike DeWine named him in December to an open seat on the Ohio Supreme Court.
Because of his association with Borges, Deters has recused himself from a separate state case against FirstEnergy stemming from the scandal that’s been appealed to the high court.
Householder and Borges were among five people arrested by federal authorities in July 2020, charged along with a dark money group, for their roles in the wide-ranging scheme. A federal investigation remains ongoing.
Two others — Juan Cespedes and Jeff Longstreth — have pleaded guilty and are cooperating as they await sentences of up to six months in prison. A third man, the late Statehouse superlobbyist Neil Clark, pleaded not guilty before dying by suicide in 2021. Generation Now, the 501(c) nonprofit through which much of the money flowed, also has pleaded guilty to racketeering.
FirstEnergy also has admitted to its role, admitting in an agreement with the government to using dark money groups to fund the effort and agreeing to pay a $230 million fine and meet other conditions in order to avoid prosecution.
