Beware of How You Respond to Negative Reviews

Many marketing surveys indicate that 70% to 95% of consumers rely on online reviews or feedback when making purchasing decisions. For instance, it’s common for potential customers to quickly check a towing company’s Google My Business profile on their mobile phones to read testimonials and decide who to call. These platforms also make it incredibly easy for customers to leave feedback—ranging from glowing praise for exceptional service to scathing critiques of perceived poor treatment. If your business handles repossessions, you’ve probably encountered your fair share of negative reviews. However, before you type a response, it’s crucial to understand the new FTC regulations and how they affect how you respond to negative reviews.

The Federal Trade Commission (FTC) has introduced stringent rules to crack down on deceptive online practices involving fake reviews and misleading testimonials. This move is a game-changer for businesses, particularly in industries like towing, where public perception can significantly impact success. Managing online feedback can be a minefield for towing companies—especially those involved in repossessions. As industry leaders and partners to towing professionals, Collins Manufacturing understands these challenges. It offers guidance to help towing companies comply with these new rules while maintaining a positive online reputation.

Overview of the FTC’s New Rules

Announced in August 2024, the FTC’s new guidelines aim to promote transparency and authenticity in online reviews and testimonials. It’s essential to understand them before you respond to negative reviews. These rules explicitly ban:

Fake Reviews: Any review that misrepresents the experience of a non-existent or fabricated customer. For example, companies may not pay non-customers to post phony reviews of their services.
Review Manipulation: Suppressing negative reviews or prioritizing positive ones in ways that mislead consumers. For example, companies may not filter negative reviews while at the same time promoting the remaining reviews as an accurate representation of customer feedback.
Compensated Reviews Without Disclosure: Offering incentives for positive reviews without explicit acknowledgment. For example, if you offer a discount or a giveaway for leaving a positive review, you must disclose it in the review.
Unfair Responses: Intimidating or retaliating against customers who leave negative reviews. For example, you cannot threaten to refuse future service to a customer who has left a negative review or demand they remove it.

Non-compliance with these rules can result in hefty fines, reputational damage, and loss of consumer trust.

Anticipating and Avoiding Common Pitfalls when You Respond to Negative Reviews

Even with best practices in place, towing companies must remain vigilant. Below are common pitfalls and tips for avoiding them:

Suppressing Negative Reviews: Attempting to hide or delete negative reviews can backfire, leading to penalties and loss of credibility. Instead, focus on resolving issues constructively and encouraging satisfied customers to share their experiences.
Fake or Solicited Reviews: Never engage in practices that could be interpreted as creating fake reviews or manipulating ratings. Authenticity is critical to building long-term trust.
Ignoring Feedback: Neglecting to address reviews—positive or negative—can harm your reputation. Timely, thoughtful responses show that your company values customer input.

Unique Challenges for Towing Companies

Towing companies often face public scrutiny, especially those involved in repossessions or towing from restricted zones. While many reviews reflect genuine customer interactions, some negative reviews can stem from frustration or anger rather than the quality of service. This creates a unique set of challenges:

Handling Emotionally Charged Feedback: Towing companies may receive reviews from individuals upset over vehicle repossessions. These reviews, while heated, often do not reflect a true customer-service relationship. Responding to these reviews negatively or inappropriately could be seen as retaliatory, violating the FTC’s rules.
Accusations of Bias: Consumers may claim towing companies delete or suppress critical feedback. The new rules require transparency in managing reviews and making clear policies on how feedback is collected, moderated, and displayed.
Authenticity and Proof: With fake reviews under the microscope, towing companies must ensure every testimonial is verifiable and aligned with FTC guidelines. Reviews that exaggerate positive experiences or misrepresent reality could lead to penalties.

Use These Best Practices To Properly Respond to Negative Reviews

Collins Manufacturing is committed to helping our towing industry partners thrive under these new regulations. Below are actionable strategies towing companies can adopt:

1. Develop a Transparent Review Policy

Create a clear, accessible review policy outlining how reviews are solicited, moderated, and displayed. Transparency builds trust and ensures compliance with FTC standards. For instance:

Clearly disclose any incentives offered for reviews.
Avoid prioritizing positive testimonials over negative ones in promotional materials.
Outline criteria for suppressing positive and negative reviews, for example, any review using expletive (“foul”) language.

2. Respond Thoughtfully to Feedback

A negative review is an opportunity for your company to show its professionalism. When handling negative feedback, remain calm and be empathetic. Avoid emotional or defensive responses, which could be deemed retaliatory. For example:

Acknowledge the reviewer’s concerns without escalating the situation.
Refrain from arguing the details of the concerns publicly.
Provide a contact channel for private resolution.

3. Leverage Verified Review Platforms

Use third-party platforms that specialize in verifying customer reviews. Verified platforms authenticate reviews, ensuring they are genuine and unbiased. This builds credibility and protects towing companies from claims of fake testimonials.

4. Train Staff on FTC Compliance

Ensure employees and contractors understand the implications of the new rules. Training should cover:

Proper ways to solicit feedback.
Guidelines for responding to negative reviews.
Recognizing potential violations of the new regulations.

5. Highlight Positive Experiences Transparently

Towing companies can focus on sharing positive stories from customers while adhering to FTC guidelines. For example:

Share testimonials from grateful motorists your company assisted during emergencies.
Showcase case studies of successful partnerships with businesses or municipalities.

6. Monitor Online Reputation Proactively

Use tools to track mentions and reviews online. Proactive monitoring allows towing companies to address concerns quickly and prevent escalation.

Collins Manufacturing Supports Towing Companies

Collins Manufacturing is proud to partner with towing professionals nationwide, providing innovative solutions that empower their success. Our lightweight, highly functional equipment helps towing companies deliver efficient, reliable service. We also understand that reputation management is as vital as operational excellence in today’s digital landscape.

Why Choose Collins Manufacturing?

Expertise in Towing Industry Challenges: With years of experience, we understand the complexities of towing, from repossessions to roadside assistance.
Commitment to Integrity: We champion honest, transparent business practices.
Support Beyond Equipment: Our partnerships extend beyond providing quality tools—we offer insights and resources to help towing companies navigate industry challenges, including reputation management.

Our Collins Hi-Speed Dolly and other premium towing solutions underscore reliability and professionalism. When towing companies use our equipment, they demonstrate a commitment to quality service, reinforcing positive customer experiences that translate into authentic testimonials.

At Collins Manufacturing, we are more than a supplier—we are a partner in your success. Our commitment to quality and integrity helps towing professionals confidently navigate their industry’s complexities. Whether it’s providing innovative equipment or sharing strategies for handling customer feedback, we’re here to support you every step of the way.

For towing companies navigating these new regulations, remember that honesty, transparency, and professionalism are your greatest allies. Let Collins Manufacturing help you build a foundation of trust—both online and on the road.