Can Regulation Restore Authenticity? Evidence from Policies Against Online Review Suppression

Businesses have long sought to shape their online reputations, not only by soliciting positive reviews but also by suppressing negative ones through legal threats. Such practices distort consumer decision-making and undermine trust in digital marketplaces. To address this problem, the U.S. Congress enacted the Consumer Review Fairness Act (CRFA) in 2016, prohibiting businesses from using contractual clauses or intimidation to silence consumer feedback. Leveraging millions of hotel reviews from TripAdvisor, this study provides the first systematic evaluation of the CRFA’s effectiveness. We find that after the law’s enactment, U.S. hotel reviews became longer, more candid, and systematically more negative. Effects were especially strong for less reputable hotels, highly competitive markets, and experienced reviewers, pointing to where suppression had been most prevalent. Supplemental analyses confirm similar patterns using Google Places data and state-level repeals of criminal defamation laws. These findings demonstrate that regulation can effectively restore transparency and authenticity in online review platforms. For policymakers, the results provide concrete evidence that consumer-protection laws can counteract harmful business practices. For managers and platforms, they underscore the value of fostering open feedback ecosystems that promote trust and informed consumer choice.