FTC Enforces New Rules to Tackle Fake Reviews and Deceptive Testimonials
The Federal Trade Commission (FTC) began enforcing new rules on Monday to crack down on fake reviews and testimonials, targeting companies that engage in deceptive practices. FTC Chair Lina Khan encouraged consumers to report suspicious reviews, including AI-generated or scam testimonials, through the FTC’s fraud-reporting website.
The new rules prohibit six key activities:
- Posting fake consumer or celebrity reviews.
- Buying or selling fake positive or negative reviews.
- Failing to disclose insider-written reviews.
- Operating fake independent review websites.
- Suppressing or removing negative reviews.
- Buying or selling fake social media influence, such as followers or views.
Consumers can now report violations to the FTC, though the rules only apply to fake testimonials posted after they took effect. The FTC can still use broader regulations to address past violations. Enforcement will involve suing offenders, with violators facing potential fines of up to $51,744 per violation, though final penalties will be decided by the courts. Concerns remain about the FTC’s ability to handle the vast number of fake reviews online.
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