FTC bans fake online reviews, inflated social media influence; rule takes effect in October

[BumRushDaShow]

Last edited Thu Aug 15, 2024, 09:10 AM - Edit history (1)

Source: NBC News/CNBC

Aug. 15, 2024, 12:21 AM EDT / Source: CNBC


The Federal Trade Commission on Wednesday voted unanimously to ban marketers from using fake reviews, like those generated with AI technology, and other misleading practices to promote their products and services.

All five FTC commissioners voted to adopt the final rule, which will go into effect 60 days after it is published in the Federal Register, the government’s official catalog of rules and notices.

Typically, rules are published within days of their adoption, meaning that consumers can expect to see the FTC’s fake review ban go into effect starting in mid-October. “Fake reviews not only waste people’s time and money, but also pollute the marketplace and divert business away from honest competitors,” FTC Chair Lina Khan said in a statement.

Along with prohibiting reviews written by non-humans, the FTC’s rule also forbids companies from paying for either positive or negative reviews to falsely boost or denigrate a product. It also forbids marketers from exaggerating their own influence by, for example, paying for bots to inflate their follower count.

Read more: https://www.nbcnews.com/business/business-news/ftc-bans-fake-online-reviews-inflated-social-media-influence-rule-take-rcna166644

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FTC PRESS RELEASE - Federal Trade Commission Announces Final Rule Banning Fake Reviews and Testimonials[/b]

[mahatmakanejeeves]

1. This is the best post I have ever seen! I give it five stars! Totally recommend for purchase! NT

[BumRushDaShow]

3. How was the shipping?

Was it on time? Any damage?












(Good morning! )

[lostnfound]

2. I think this is unconstitutional but i don't care. Nt

[BumRushDaShow]

4. It can be considered

"deceptive advertising", a subject the FTC has been battling since its inception.

[BadgerKid]

5. Good luck with that?

Fortunately some reviews are obviously simply trying to trash the product ( not dissimilarly from certain politics). I appreciate reviews that alert of possible incompatibilities or compare and contrast features in a way that the manufacturer cannot be bothered to state upfront in the interest of market segmentation.

[LisaM]

6. I hope it works.

I generally ignore online reviews, but I know people who seem to use them for everything. It's maddening.

I really hate it for books. I know authors who actually solicit their friends for good book reviews whether or not they've read the book or whether or not it's good!

[LeftInTX]

12. It sounds limited in scope. It won't affect Amazon reviews etc.

It's saying companies can't quote "fake reviews" etc.

You know when you see a product ad and it includes a review in the ad, "What doctors are saying about XYZ mattresses" "What customers are saying about XYZ mattresses"

It will affect fake reviews on XYZ Mattresses' website, but it likely won't impact reviews left on Amazon.

It harkens back to:

[Old Okie]

7. Fake reviews

The coveted 5 star reviews are full of fake and paid for reviews on Amazon and most other sites. I hope that can make this work but my phone still gets tons of robocalls.

[spooky3]

8. I wonder if the new law prohibits paying customers to delete truthful bad reviews.

A product I bought failed outside the warranty period but well before its useful life should have ended. I gave it a low rating with an explanation as to why. The company contacted me and said there was a defective part, and they would send a small amount of $ if I would remove the review. I said I would increase the rating to reflect how the company had responded but I would not remove the review (because others should be warned). They didn't accept my offer.

[Diraven]

9. Does this apply to foreign companies?

I suspect there's no way to enforce that. Foreign scammers are the worst with this, especially on eBay.

[BumRushDaShow]

10. I expect this applies to any company domiciled in the U.S.

who would now be responsible for the stuff that gets posted on their sites, no matter where the source originated.

[Zoomie1986]

11. The reviews would have to come down

Regardless of where they came from. That's a start.

I'd guess that most reviews of housewares, cell phone cases, and so on are 90% fake reviews. It's not only Amazon that has a problem with this, but all sites that allow product reviews.