FTC Bans Fake Reviews In Sweeping New Rule via @sejournal, @MattGSouthern

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FTC bans fake reviews and deceptive practices successful caller rule. Businesses look stricter regulations connected reappraisal acquisition and disclosure.

FTC bans fake reviews and reappraisal manipulation.
Businesses indispensable disclose connections with reviewers.
Rule takes effect successful astir 2 months.

The Federal Trade Commission (FTC) has announced a caller regularisation to combat fake reviews and clasp businesses accountable for deceptive practices.

Key Provisions Of The New Rule

The regularisation targets reappraisal fraud successful the pursuing ways:

No fake reviews: You can’t marque up, buy, sell, oregon stock mendacious reviews. This includes AI-generated reviews.
No bribes for bully reviews: Businesses can’t wage oregon reward radical for leaving affirmative reviews.
Honesty astir connections: If you enactment for oregon person ties to a business, you indispensable accidental truthful erstwhile reviewing it.
No bullying to region atrocious reviews: Businesses can’t usage ineligible threats to scare radical into taking down antagonistic reviews.
No fake popularity: Buying oregon selling fake likes, followers, oregon views connected societal media is prohibited.

FTC Chair Lina M. Khan stated:

“Fake reviews not lone discarded people’s clip and wealth but besides pollute the marketplace and divert concern distant from honorable competitors.”

Background & Development

The FTC created this regularisation done respective steps:

In November 2022, they announced they considered making a caller rule.
In June 2023, they shared their archetypal draught of the rule.
In February 2024, they held a nationalist gathering to sermon the projected rule.

Along the way, they listened to feedback and made changes to amended the rule.

All 5 FTC commissioners agreed connected the last mentation and voted to o.k. it.

What Does This Mean

Here’s what this caller regularisation means for integer marketers and businesses:

Companies indispensable wage person attraction to however they get and negociate reviews.
Watch retired for fake AI reviews. The FTC is alert of caller tech being utilized to bolster reappraisal scores.
People who beforehand products online indispensable beryllium wide astir their connections to the companies they’re talking about.
Businesses can’t endanger customers to instrumentality down antagonistic reviews.

When these rules are enacted, the FTC tin good companies that knowingly interruption them.

To comply with the caller regulations, businesses whitethorn request to:

Audit their existent reappraisal acquisition practices.
Implement stricter guidelines for worker and influencer disclosures.
Invest successful lawsuit acquisition improvements to people make affirmative reviews.
Develop ethical strategies for handling antagonistic feedback.