Amazon(US:AMZN) TechXploreยท2024-12-12 11:28Core Insights - Amazon.com Inc. is actively seeking information from online shoppers regarding product testimonials they have posted on social media platforms like TikTok, YouTube, and Instagram, indicating a strategic focus on paid reviews to enhance competitive advantage [1][2] - This initiative aligns with a recent Federal Trade Commission (FTC) rule that prohibits businesses from paying for consumer reviews, which aims to address the growing issue of misleading paid testimonials [2][3] Group 1 - Amazon's product review team has sent questionnaires to reviewers, inquiring about their interactions with sellers and their work as influencers on various platforms [2] - The FTC has notified 700 companies, including Amazon, about its plans to regulate paid reviews, highlighting the increasing scrutiny on this practice [3] - Amazon has automated systems to detect paid reviews and has prevented over 250 million suspect reviews from appearing in 2023 [6] Group 2 - The holiday shopping season presents a significant opportunity for merchants to leverage paid reviews, as it can substantially boost sales for lesser-known products [7] - Concerns have been raised by Amazon merchants regarding potential suspensions following the receipt of questionnaires by influencers they have collaborated with [8] - Experts suggest that Amazon's investigation into influencer reviews may lead to stricter scrutiny of how sellers engage with social media influencers [9]