“Fake reviews not only waste people’s time and money, but also
pollute the marketplace and divert business away from honest
competitors,” FTC Chair Lina Khan said about the rule in August.
She added that the rule will “protect Americans from getting
cheated, put businesses that unlawfully game the system on
notice, and promote markets that are fair, honest, and
competitive.”
Specifically, the rule bans reviews and testimonials attributed
to people who don’t exist or are generated by artificial
intelligence, people who don’t have experience with the business
or product/services, or misrepresent their experience.
It also bans businesses from creating or selling reviews or
testimonials. Businesses that knowingly buy fake reviews,
procure them from company insiders or disseminate fake reviews
will be penalized. It also prohibits businesses from using
“unfounded or groundless legal threats, physical threats,
intimidation, or certain false public accusations.”
People can report violations at https://reportfraud.ftc.gov.
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