The Federal Trade Commission's rule bans creating, buying, or selling fake reviews, including those from non-existent people or AI, enhancing review authenticity.
'Fake reviews not only waste people's time and money, but also pollute the marketplace and divert business away from honest competitors,' said FTC Chair Lina Khan.
Businesses can't incentivize genuine customers to leave reviews and are restricted from suppressing negative feedback from customers, promoting a transparent review system.
Maximum civil penalties for violating these rules can reach $51,744, putting businesses that mislead with reviews on notice to comply with regulations.
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