FTC’s rule banning fake online reviews goes into result
WASHINGTON — A federal rule banning fake online reviews is now in result.
The Federal Trade percentage issued the rule in August banning the sale or purchase of online reviews. The rule, which went into result Monday, allows the agency to seek civil penalties against those who knowingly violate it.
“Fake reviews not only waste people’s period and money, but also pollute the marketplace and divert business away from truthful competitors,” FTC Chair Lina Khan said about the rule in August. She added that the rule will “protect Americans from getting cheated, put businesses that unlawfully game the structure on notice, and promote markets that are fair, truthful, and competitive.”
Specifically, the rule bans reviews and testimonials attributed to people who don’t exist or are generated by artificial intelligence, people who don’t have encounter with the business or product/services, or misrepresent their encounter.
It also bans businesses from creating or selling reviews or testimonials. Businesses that knowingly buy fake reviews, procure them from corporation insiders or disseminate fake reviews will be penalized. It also prohibits businesses from using “unfounded or groundless legal threats, physical threats, intimidation, or sure untrue community accusations.”
People can update violations at https://reportfraud.ftc.gov.
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