Is it illegal for healthcare organizations to post fake reviews?

“The Federal Trade Commission (FTC) issued a new rule prohibiting businesses from posting fake or misleading reviews. The new rule imposes hefty civil penalties against businesses that violate it,” explained JD Supra in Legal Actions for Businesses Targeted by Fake Reviews

Federal laws that apply

Federal Trade Commission Act

The FTC Act prohibits "unfair or deceptive acts or practices in or affecting commerce." The FTC has consistently held that fake reviews constitute deceptive marketing practices. Under Section 5 of the FTC Act, the commission has the authority to:

• Issue cease and desist orders
• Impose substantial fines
• Require corrective advertising
  
  

Consumer Review Fairness Act

The Consumer Review Fairness Act protects consumers' ability to share honest opinions about businesses, products, and services. While it doesn't directly address fake positive reviews, it establishes the importance of authentic consumer feedback in the marketplace.

Healthcare-specific regulations

HIPAA considerations

While the Health Insurance Portability and Accountability Act (HIPAA) doesn't specifically address fake reviews, there could be compliance issues if:

• Patient information is misused to create fake identities
• Real patient information is revealed in responding to reviews
  
  

State medical board regulations

State medical boards have ethics rules that prohibit false or misleading advertising. Fake reviews clearly fall into this category and could result in professional discipline.

For example, the Medical Board of California guidelines explicitly state that physicians cannot post fake reviews or testimonials. In their "Manual of Model Disciplinary Orders and Disciplinary Guidelines," they classify the posting of false or misleading advertisements (including fake reviews) as "dishonesty" that can result in license revocation or suspension.

Real-life cases

Several healthcare providers have faced serious penalties for fake review schemes:

• In 2019, the FTC fined Cure Encapsulations, Inc. $50,000 for paying for fake reviews of their weight-loss supplement on Amazon.
• MedRite Care settled $50,000 with the New York Attorney General’s office to resolve allegations that it paid thousands of dollars to internet advertising companies and freelance writers.
• Lifestyle Lift, a cosmetic surgery company, settled for $300,000 with the New York Attorney General in 2009 for having employees publish fake positive reviews online.

Reputation management 

Forbes Magazine provides 6 tactics to establishing a good online reputation: 

1. Maintain Accurate Online Review Listings

• List your practice on all pertinent yet key review sites such as Google, Facebook and Yelp
• Be sure your practice’s name, address, and phone number are spelled correctly and sound right on all platforms

2. Oversee Your Online Reviews

• Enable notifications from all review platforms to get notified of a new review
• Keep track of your online reviews every week
• Scrutinize your patient reviews to extract key information from them. For example, look for repeated themes, whether positive or negative, as they can guide you to improve patient satisfaction

3. Collect Authentic Feedback

• Educate staff to request reviews from happy patients
• Simplify the review procedure

4. Gain Insights Into Patient Sentiment Through NPS Surveys

• By conducting Net Promoter Score (NPS) surveys, you can gauge patient satisfaction levels and pinpoint areas that require improvement. These surveys also help you identify loyal patients who can become advocates for your practice. With NPS surveys, you can gain valuable insights into patient sentiment and make informed decisions to enhance your practice's performance.

5. Reply To All Reviews, Including Negative Ones

• Express gratitude to the reviewer, mentioning his/her name
• Recognize the issue, express regret and demonstrate understanding
• Continue the conversation offline for more in-depth discussions

6. Highlight Your Testimonials

• Include a dedicated testimonials page on your website to enhance your reputation
• Add customer reviews on your homepage to provide instant reassurance

FAQs

What are the penalties for posting fake reviews in healthcare?

Healthcare organizations can face significant penalties for posting fake reviews. For example, the FTC and state attorney generals have fined companies for engaging in such deceptive practices, with penalties ranging from tens of thousands to hundreds of thousands of dollars.

Can state medical boards take action against healthcare organizations for fake reviews?

Yes, state medical boards can take disciplinary action against healthcare organizations or individual professionals for posting fake reviews. 

Are there ways for healthcare organizations to improve their online reputation without using fake reviews?

Yes, healthcare organizations can improve their online reputation by fostering genuine patient satisfaction, encouraging patients to leave honest reviews, professionally addressing negative feedback, and using ethical reputation management strategies that avoid deceptive practices.