Beware of online sellers who think there is nothing wrong with publishing fake reviews from fabricated customers. Such behavior is no longer allowed. The federal government’s ban on fake online reviews has gone into effect.
The Federal Trade Commission issued final rules on the buying and selling of online reviews in August, effective 60 days after publication in the Federal Register. The agency’s commissioners voted unanimously in favor of the regulation.
The rule prohibits companies from creating, buying or selling reviews or testimonials from non-existent people, including those generated by AI. False celebrity endorsements are not allowed, and businesses may not pay or encourage genuine customers to leave positive or negative reviews.
Certain reviews and testimonials written by people closely associated with a company without a disclaimer are prohibited. There are also restrictions on asking an employee’s next of kin for a review.
The rules include restrictions on suppressing negative reviews from customers. It also prohibits the intentional buying and selling of fake followers or views that exaggerate the influence or importance of a social media account for commercial purposes.
Fines for violating these measures can be very high. Currently, the maximum civil penalty for each violation is $51,744.
“Fake reviews not only waste people’s time and money, they pollute the market and divert business from honest competitors,” FTC Chair Lina Khan said when the rule was finalized. It will happen,” he said. “By strengthening the FTC’s toolkit to combat deceptive advertising, the final rule protects Americans from deception, warns companies that take advantage of the system illegally, and ensures fair, honest, and competitive It will promote the market.”
This rule is a positive move for consumers, with the idea that reviews should be more reliable in the future. In another victory for consumer rights, the FTC recently issued a final rule that makes it as easy for people to cancel a subscription as it is to sign up for one.
