The Federal Trade Commission’s crackdown on fabricated reviews and fake consumer and celebrity testimonials has led to new official federal regulations to prevent these practices on websites and e-commerce hubs, with the FTC approving the rules against the buying and selling of fake reviews and product testimonials. The new rules address buying and selling fake consumer reviews, including AI-generated testimonials, while prohibiting the provision of compensation for writing reviews expressing a specific sentiment and misrepresenting independent reviews. Stiff penalties for violators include fines of up to $50,000 per violation. The FTC’s announcement follows years of efforts to control fake online reviews, with past cases resulting in significant fines for companies like Cure Encapsulations Inc. and The Bountiful Company. The Commission’s actions are part of broader efforts to combat fake reviews, with entities like Yelp also taking steps to discourage the practice by listing businesses warned for posting or buying fake reviews.
