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The FTC finalizes its rules clamping down on fake online reviews

<p>The Federal Trade Commission’s (FTC) crackdown on fabricated reviews and fake consumer and celebrity testimonials has produced <a data-i13n="cpos:1;pos:1" href="https://www.ftc.gov/news-events/news/press-releases/2024/08/federal-trade-commission-announces-final-rule-banning-fake-reviews-testimonials">new official federal regulations[/url] to prevent the use of these practices on websites and e-commerce hubs. The FTC approved the new rules against the buying and selling of fake reviews and product testimonials with a 5-0 vote on Wednesday. The rules will become effective in 60 days.</p>
<p>The new FTC rules address the practice of buying and selling fake consumer reviews, including the use of AI-generated consumer and celebrity testimonials for products or services. They also prevent “providing compensation or other incentives conditioned on the writing of consumer reviews expressing a particular sentiment, either positive or negative” and prohibit “a business from misrepresenting that a website or entity it controls provides independent reviews or opinions” about products or services, according to a statement released by the FTC.</p>
<span id="end-legacy-contents"></span><p>The formal ban also comes with stiff penalties for violators of the new rules. Fines could reach as high as <a data-i13n="cpos:2;pos:1" href="https://www.engadget.com/the-ftc-plans-to-slap-companies-with-hefty-fines-for-using-fake-reviews-192833691.html">$50,000 per violation[/url].</p>
<p>The FTC officially announced its intent to seek new rules for such practices <a data-i13n="cpos:3;pos:1" href="https://www.ftc.gov/news-events/news/press-releases/2022/10/ftc-explore-rulemaking-combat-fake-reviews-other-deceptive-endorsements">last October[/url]. The Commission has been trying to get control of fake online reviews and testimonials for years. The first such case was resolved in 2019 against <a data-i13n="cpos:4;pos:1" href="https://www.engadget.com/2019-02-27-ftc-cracks-down-on-fake-amazon-reviews-in-landmark-case.html">the Amazon seller Cure Encapsulations Inc.[/url] The company was accused of paying for fake feedback for its weight-loss products from the amazonvierifiedreviews.com website, and the FTC slapped them with a $12.8 million fine. The FTC has also investigated similar cases against the supplement maker <a data-i13n="cpos:5;pos:1" href="https://www.engadget.com/ftc-fines-supplement-maker-600000-for-review-hijacking-amazon-listings-210142185.html">The Bountiful Company[/url] for “review hijacking” its products’ reviews and ratings on Amazon that ended with a $600,000 fine, and <a data-i13n="cpos:6;pos:1" href="https://www.engadget.com/2019-10-21-sunday-riley-settles-with-ftc-over-fake-reviews.html">the skincare maker Sunday Riley[/url] that created fake online reviews by ordering employees to write them.</p>
<p>The government isn’t the only entity trying to discourage the buying and selling of fake reviews. The service recommendation website <a data-i13n="cpos:7;pos:1" href="https://www.engadget.com/yelp-has-a-wall-of-shame-for-businesses-caught-paying-for-fake-reviews-110011882.html">Yelp created a database[/url] that lists businesses who received warnings for posting or buying fake reviews for its Yelp page.</p>This article originally appeared on Engadget at https://www.engadget.com/general/the-ftc-finalizes-its-rules-clamping-down-on-fake-online-reviews-191339646.html?src=rss

Source: The FTC finalizes its rules clamping down on fake online reviews (https://www.engadget.com/general/the-ftc-finalizes-its-rules-clamping-down-on-fake-online-reviews-191339646.html?src=rss)