FTC rolls out new rule to end fake reviews and protect consumers
The new rule aims to clean up online marketplaces.
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Credit: Ryan Haines / Android Authority
- The FTC has introduced a new rule banning the sale or purchase of fake reviews and testimonials, with the power to impose civil penalties on violators.
- The rule also prohibits businesses from offering incentives for specific types of reviews and mandates clear disclosure of any insider connections in reviews.
- It addresses issues like fake social media metrics and review suppression, aiming to ensure a fairer and more transparent marketplace.
The Federal Trade Commission (FTC) has announced a new rule designed to tackle the growing issue of fake reviews and testimonials. This rule, which will take effect 60 days after its publication in the Federal Register, aims to curb deceptive practices by making it illegal to create, buy, or sell false reviews. It also allows the FTC to impose civil penalties on those who knowingly break these rules.
FTC Chair Lina M. Khan highlighted the importance of the rule, saying:
