Feds Officially Ban Fake Online Reviews and Testimonials

The Federal Trade Commission (FTC) announced a last regularisation connected Wednesday that volition prohibit companies from creating fake online reviews and testimonials for products, according to a property merchandise from the agency. The caller regularisation volition besides necessitate disclosure of “insider” reviews from radical associated with a institution that’s getting the review, halt companies from trying to suppress atrocious reviews, and prohibition the acquisition of societal media power done fake followers oregon bots.

The FTC archetypal began the process for this crackdown connected fake reviews backmost successful November 2022 and astir precocious held a proceeding connected the regularisation successful February 2024. That proceeding allowed the bureau to perceive feedback and marque changes to the proposals, clarifying a fig of points that whitethorn person been confusing for consumers and businesses.

The prohibition connected fake reviews includes AI-generated reviews and existent radical that person nary acquisition with the merchandise being reviewed. Buying reviews, whether affirmative oregon negative, is besides banned successful immoderate form.

So-called “insider” reviews are prohibited by employees of a fixed company, but the FTC besides says anyone with a “material connection” to the concern should besides refrain from creating reviews, including “immediate relatives” of employees.

The caller regularisation volition go effectual 60 days aft it’s published successful the Federal Register, according to an FTC property merchandise Wednesday, and immoderate violations volition beryllium met with civilian alternatively than transgression penalties. The ballot for the caller regularisation was 5-0.

“Fake reviews not lone discarded people’s clip and money, but besides pollute the marketplace and divert concern distant from honorable competitors,” FTC Chair Lina M. Khan said successful a press release. “By strengthening the FTC’s toolkit to combat deceptive advertising, the last regularisation volition support Americans from getting cheated, enactment businesses that unlawfully crippled the strategy connected notice, and beforehand markets that are fair, honest, and competitive.”

The FTC has been connected a teardrop during the Biden years, beefing up enforcement of rules intended to support consumers, attempting to ace down connected scams, and keeping companies successful check. Big Tech has besides been successful the agency’s crosshairs, which has made Khan a people of attacks by galore successful the concern satellite who spot her arsenic being excessively forceful.

Several media reports person indicated that immoderate large clip Democratic donors to Kamala Harris’ statesmanlike run against Donald Trump are making a propulsion to oust her. But adjacent if Harris wins, it’s not wide what she whitethorn determine to do. Oddly enough, Trump’s vice statesmanlike campaigner JD Vance has praised Khan for her anti-Big Tech stances, arsenic the New York Times precocious pointed out.