The Federal Trade Commission has implemented a ban on the creation, purchase, or sale of fake reviews, targeting a surge of AI-generated testimonials across platforms.
"By strengthening the FTC's toolkit to fight deceptive advertising, the final rule will protect Americans from getting cheated..." said FTC chairman Lina Khan.
The ruling also specifically targets misleading celebrity endorsements, requiring clear disclaimers if they come from employees, relatives, or friends.
Brands are prohibited from offering incentives for fake reviews and must not suppress negative feedback, ensuring transparency and fairness in online marketplaces.
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