"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 said in a statement. "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."
The ordinance, handed down last week, targets a sweeping array of dishonest online review practices ranging from purchasing positive reviews to paying for fake followers to fake a strong social media presence to "reviews and testimonials that misrepresent that they are by someone who does not exist."
The ban also forbids the publishing of reviews that fail to disclose conflicting interests...in instances of "insider reviews" in which a product review is "written by company insiders that fail to clearly and conspicuously disclose the giver's material connection to the business."
Instances of fake reviews for individual products, like the one-to-five star reviews on digital marketplaces like Amazon, have exploded in the AI era, making it that much harder for online shoppers to tell whether a product is really up to snuff - or is instead relying on phony, AI-spun assessments to fake legitimacy."
#federal-trade-commission #fake-reviews #ai-generated-content #consumer-protection #online-advertising
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