The Federal Trade Commission unanimously voted to prohibit marketers from using fake reviews generated by AI technology, ensuring consumer honesty in product promotion.
'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 stated.
The new rule could lead to fines for companies violating the ban on misleading reviews, especially for e-commerce sites with large volumes of reviews.
With the rise of e-commerce and automated reviews, consumers often purchase items based on manipulated perceptions rather than genuine user experiences.
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