The Federal Trade Commission has unanimously voted to ban marketers from using fake reviews, including those generated by AI technology, to promote their products and services. The rule will go into effect 60 days after being published in the Federal Register, likely in mid-October. Violators could face fines for each offense, potentially adding up quickly for e-commerce sites. The rule also prohibits companies from paying for positive or negative reviews, exaggerating their influence, or using bots to boost follower counts.
The rise of e-commerce, influencer marketing, and generative AI has led to an increase in fake reviews, with some consumers purchasing products based on false information. While fake reviews are already illegal, some companies have taken action against the deceptive practice themselves, such as Amazon suing Facebook administrators for brokering fake reviews.
The new FTC rule will provide stricter government oversight, replacing individual prosecutions with streamlined enforcement. This announcement coincided with the White House’s Creator Economy Conference, where officials listened to concerns from online influencers and digital content professionals. The goal of the rule is to protect consumers from misleading practices and ensure a fair marketplace for honest competitors. Companies will need to be vigilant in adhering to the new regulations to avoid penalties and maintain trust with consumers.
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