By: Geeq  on Oct 22, 2024

On October 21, 2024, the FTC’s final rule banning fake reviews and testimonials came into effect. This internet phenomenon is often used to harm the reputations and sales of competitors, while benefiting others by comparison.

Consider the widespread issue of fake reviews on platforms like Amazon, where AI can easily create fake personas that post false testimonials—a process known as “review bombing.”

These new rules aim to prevent businesses from exploiting reviews. However, the challenge lies in how to effectively implement them.

As with any policy, the risk is either going too far or not far enough. These regulations seem focused on businesses that knowingly misuse reviews and influence. But how do we address the challenges of deterrence and enforcement? How can we tell the difference between a fake review and a legitimate bad experience?

Surprisingly, there is a solution. Geeq’s no-smart contract NFTs offer an easy-to-generate, verify, and implement approach.

Unlike smart contract NFTs, Geeq NFTs cannot harm consumers. There are numerous cases where smart contract NFTs have contained malicious code that drained unsuspecting consumers’ wallets. Geeq NFTs eliminate this risk because they contain no executable code—malicious or otherwise.

Instead, Geeq NFTs are simple, factual vehicles. Using verifiable (and potentially anonymous) blockchain accounts instead of anonymous website reviews offers three key advantages:

1. Verified Customer Reviews: Businesses can easily issue NFTs to customers at the point of sale, without the need for smart contracts. These NFTs act as vouchers for verified feedback. The entire transaction is recorded on-chain, ensuring transparency from the start. NFTs can also be branded and include additional information, such as a thank-you message or notice of upcoming events.
2. Tracking and Consistency: Geeq’s blockchain eliminates the need for off-chain states or unverifiable data stores, which are common issues on other chains. No technical expertise is required: all data is stored on-chain and can be easily viewed through a user-friendly app that reads from a Geeq API. Geeq’s protocol ensures that reviews are validated equally across businesses, preventing wealthier companies from manipulating their reviews.
3. Regulatory Oversight: Regulators can be granted access to view NFT returns, providing transparency and ensuring businesses do not selectively publish reviews.

The precision and ease of blockchain self-policing offer clear incentives for businesses, consumers, and regulators alike. It’s a far better approach than navigating the new rules in the dark. These NFT services are exclusively available through Geeq.

If you are a business or regulator looking to stay ahead of the curve, please contact stephanie.so@geeq.io for more information.