Online merchants who see no problem posting fake reviews from fictitious customers beware: this practice is no longer allowed. A federal ban on fake online reviews has gone into effect.
The Federal Trade Commission has issued a final rule on the buying and selling of online reviews and shall take effect 60 days after publication in the Federal Register. The commissioners of the agency voted unanimously in favor of the regulation.
The rule prohibits businesses from creating, buying or selling reviews and opinions of non-existent people, including those generated by AI. False celebrity endorsements are not permitted, and companies may not pay or otherwise encourage genuine customers to leave positive or negative reviews.
Without disclaimer, some of the reviews and opinions written by people with close ties to the company are nothing. There are also restrictions on soliciting opinions from close relatives of employees.
The rule includes restrictions on preventing negative feedback from customers. It also prohibits people knowingly selling or buying fake followers and views to increase the influence or importance of their social media accounts for commercial purposes.
Penalties for violation of these measures . The maximum civil penalty for each violation is currently $51,744.
“Fake reviews not only waste people’s time and money, they pollute the marketplace and drive business away from honest competitors,” FTC Chairwoman Lina Khan said when the rule was finalized. “By strengthening the FTC’s toolkit to combat deceptive advertising, the final rule will protect Americans from being deceived, warn businesses that game the system illegally, and promote fair, honest and competitive markets.”
The rule is a positive move for consumers, with the idea that reviews will be more reliable in the future. The FTC recently won a separate victory for consumer rights making it as easy for people to unsubscribe as it is to sign up for a subscription.
