"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 M. Khan stated. This underscores the FTC's commitment to enhancing market integrity.
The final rule prohibits reviews and testimonials from someone who does not exist, such as AI-generated fake reviews and reviews from people who have no experience with or misrepresent products. This seeks to ensure authenticity in consumer feedback.
Businesses are also prohibited from buying such reviews, procuring them, or disseminating them where the business knows the reviews are fake or false. This establishes a shift towards greater accountability for businesses in their marketing practices.
By strengthening the FTC's toolkit to fight deceptive advertising, the final rule will protect Americans from getting cheated, put businesses that unlawfully game the system on notice, and promote markets that are fair, honest, and competitive." This illustrates the FTC's broader objectives.
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