The Federal Trade Commission has introduced a new rule designed to make it harder for you to be misled by fake online reviews.
Effective as of Tuesday, the FTC rule prohibits the sale or purchase of fake reviews and allows the FTC to impose civil penalties on violators.
It also bans misleading testimonials, such as reviews generated by AI or written by individuals who have no actual experience with the business, its products or its services. In addition, the rule forbids the buying or selling of social media followers for commercial gain.
“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 an August press release, at the start of a 60-day waiting period before the rules took effect. “By strengthening the FTC’s toolkit to fight deceptive advertising, the final rule will protect Americans from being cheated, put businesses that unlawfully game the system on notice, and promote markets that are fair, honest and competitive.”
The new rule applies to future reviews. About 90% of people rely on reviews when shopping online, according to marketing platform Uberall.
Although it’s unclear how the FTC will enforce the rule, it could choose to pursue a few high-profile cases to set an example. It can seek fines up to $51,744 per violation.
The rule comes at a time when artificial intelligence could worsen the problem, as generative AI tools have the capability to quickly create thousands of fake reviews.
The issue also highlights the importance of relying on trusted review sites, such as CNET, which use human reviewers with hands-on experience and expert insights.