The Federal Trade Commission unanimously voted to ban misleading marketing practices, particularly concerning fake reviews generated by AI, emphasizing transparency in consumer purchasing.
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.'
The new rule also prohibits companies from paying for positive or negative reviews, which could lead to significant fines for repeated violations in e-commerce.
The FTC's rule, which is expected to take effect by mid-October, addresses the growing concerns around deceptive practices in e-commerce and influencer marketing.
Collection
[
|
...
]