A convincing product pitch on social media can look and sound like trustworthy advice, but the Better Business Bureau (BBB) warns that some influencers are help
A convincing product pitch on social media can look and sound like trustworthy advice, but the Better Business Bureau (BBB) warns that some influencers are helping drive consumers into bad purchases and scams.
Some social media influencers are legitimate and follow advertising rules, while others hide that they are being paid, promote products they have never used, or use artificial intelligence to create fake experts and endorsements, according to the BBB,
Over the past 24 months, consumers reported about 100,000 online purchase scams across the U.S., according to the BBB.
In Washington, online shoppers reported more than 2,700 online purchase scams, with more than $1.2 million lost.
Nearly half of all online purchase reports involved social media; the issue is not only misleading content, but that the content can be convincing enough to get people to spend money, the BBB said.
The BBB outlined three common patterns it said consumers are likely to see:
- Hidden paid promotions: The BBB said someone may be paid, receive free products or earn a commission without clearly telling the audience, making a recommendation sound personal and independent when it is actually an advertisement.
- Fake experiences or qualifications: The BBB said an influencer may promote a product they never used, or someone may pose as a doctor, veterinarian, financial expert or other professional without having the qualifications they claim.
- AI-generated endorsements and identities: The BBB said scammers can create fake celebrities, experts, customers, product images and entire personal stories. The BBB warned the person speaking may not exist, and the goal may be to sell a questionable product or steal payment information.
To help consumers spot misleading influencer promotions and protect their money, the BBB recommended verifying the person by searching their name, experience and credentials outside social media, noting that a large following is not proof someone is real, qualified or trustworthy.
The BBB also advised looking for transparency, saying paid promotions should clearly state they are advertisements, sponsored content or paid partnerships, and consumers should be cautious when a financial connection is hidden or difficult to understand.
Before buying, the BBB said consumers should research the business independently by leaving the social media app and searching for the company on their own, including reviewing its BBB Business Profile, complaint history, contact information, refund policy and customer feedback.
The BBB also recommended paying with a credit card when possible and avoiding sellers who demand gift cards, cryptocurrency, wire transfers or other hard-to-recover payments.
Consumers can research companies, read customer reviews, file reports and find more information about avoiding misleading advertisements and scams at BBB.org, the BBB said.
