FTC cracks down on fake online reviews! Violators face fines up to $50,000

It is learned that on August 14, according to foreign media reports, the US Federal Trade Commission (FTC) has established a new rule prohibiting the deliberate purchase or sale of false online reviews.

It is understood that the regulation is intended to limit AI-generated reviews and false reviews that distort product or service experiences in exchange for compensation. The regulation also prohibits the buying and selling of false opinions or fans on social media, as well as the use of intimidation to delete negative reviews. Teresa Murray of the U.S. Public Interest Research Group said that given that 90% of online shoppers make purchasing decisions based on reviews, this regulation will become an important protection.

The FTC proposed the rule in June 2023 and held an informal hearing in February of this year, after which public comments were incorporated into the final rule provisions released. For each violation, the FTC has the power to levy fines, which will impose a maximum fine of approximately $51,744 on violators.

"False reviews pollute the marketplace while wasting consumers' time and money and causing honest competitors to lose business," said Lina Khan, chairwoman of the Federal Trade Commission. "By strengthening the fight against deceptive advertising, the new rules will protect American consumers from deception and promote a fair and competitive marketplace."

Author ✎ Rayna/

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