⭐⭐⭐⭐⭐

Fake Review Peddlers Could Be in for Hefty Fines Under FTC Crackdown

Each bogus online review could soon incur a $50,000 penalty.

The Federal Trade Commission proposed new rules on Friday to address the scourge of fake online reviews. The plan is designed to stop businesses from buying or selling fake reviews to fraudulently influence customers’ perceptions about a product or service. If the proposals pass, each fake review could incur a fine of up to $50,000 for every time a consumer views it. “Our proposed rule on fake reviews shows that we’re using all available means to attack deceptive advertising in the digital age,” said Samuel Levine, the director of the FTC’s Bureau of Consumer Protection. “The rule would trigger civil penalties for violators and should help level the playing field for honest companies.” The FTC also highlighted the threat of generative artificial intelligence (AI) exacerbating the issue by making bogus reviews easier to create. The new rules are open for a two-month comment period after which they could be enshrined.