New FTC rule bans fake business reviews
Chief: Measure protects Americans from cheaters
By: Krys'tal griffin
Delaware news Journal
USA Today Network
..... With a unanimous 5-0 vote last week, [08/15/2024] the Federal Trade Commission approved a new ban on businesses that prohibits the use of fake reviews and testimonials.
.....
The rule will become effective 60 days after the date it is published in the Federal Register, the agency said.
..... On August 15, [2024] FTC announced the new rule, which allows the agency to deter AI-generated fake reviews and enforce civil penalties against violators who knowingly sell or purchase such content.
..... "Fake reviews not only wast people's time and money, but also pollute the marketplace and divert business away form honest competitors," said FTC chair Mina M. Khan. "By strengthening the FTC's toolkit to fight deceptive advertising, the final rule will protect Americans form getting cheated, put business that unlawfully game the system on notice and promote markets that are fair, honest and competitive."
..... A sampling of what the rule does:
* Reviews and testimonials that misrepresent that they are cerated by someone who does not exist, such as AI-generated content; by someone who does not have real experience with the business, its products, or tis services; or misrepresent the experience of the person authoring the review or testimonial, are prohibited.
* Businesses cannot provide compensation or other incentives in exchange for writing customer reviews that express a particular opinion, positive or negative.
* Certain reviews and testimonials written by company insiders that fail to 'clearly and conspicuously" disclose the author's business ties are prohibited, such as those given by officers or manages.
..... For consumers who are frustrated by negative reviews being removed from business pages or fake social media status being presented Online, the FTC also include coverage for those issues:
* Businesses cannot state that reviews on their website represent all or most of the reviews submitted if reviews have been suppressed based on their ratings or negative sentiments.