The Federal Trade Commission has adopted a rule banning fake reviews generated by AI and misleading practices, aiming to protect consumers and ensure marketplace integrity.
FTC Chair Lina Khan stated, 'Fake reviews not only waste people's time and money, but also pollute the marketplace and divert business away from honest competitors.'
Violations of the rule could result in fines for each infraction, indicating that e-commerce platforms with numerous reviews may face significant penalties for deceit.
The rise of automated tools for generating reviews highlights the need for stricter regulations, as consumers often make purchases based on misleading information.
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