The FTC’s fake review crackdown begins this fall

1 month ago 15

The Federal Trade Commission has announced a last regularisation banning companies from creating oregon selling fake reviews, including AI-generated ones. Once it goes into effect, the FTC tin instrumentality enactment against companies that interruption the policy.

The caller regularisation could assistance code AI-generated reviews that popular up connected sites crossed the web, including Amazon. Here are the types of deceptive practices the FTC’s caller regularisation prohibits:

Offering incentives to customers successful speech for penning affirmative oregon antagonistic feedback.
Reviews and testimonials written by “insiders” astatine a institution who neglect to “clearly and conspicuously” disclose their affiliation with the business.
Company-controlled reappraisal websites, which often advertise themselves arsenic providing autarkic opinions connected products they really own.
Threatening oregon intimidating customers into removing antagonistic reviews.
Buying oregon selling fake followers oregon views connected societal media.

The FTC archetypal projected a prohibition connected fake reviews past year. However, it’s inactive not wide however the bureau volition enforce this regularisation connected planetary marketplaces similar Amazon, wherever galore businesses that station fake reviews are located extracurricular the US. Amazon has agelong struggled with fake reviews connected the level and has attempted to usage AI to observe inauthentic feedback. In 2022, Amazon took enactment against the admins of thousands of Facebook groups selling fake merchandise reviews, portion the FTC besides fined an Amazon seller for “review hijacking” past year.

“Fake reviews not lone discarded people’s clip and money, but besides pollute the marketplace and divert concern distant from honorable competitors,” FTC Lina Khan says successful the announcement. “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’s finalized rule, which was approved with a 5-0 vote, volition spell into effect 60 days aft it’s published successful the national register. Under the rule, the FTC tin question a maximum of up to $51,744 per violation.

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