FTC Rule Banning Fake Reviews and Testimonials

[Pete Dero]

https://www.ftc.gov/news-events/news/press-releases/2024/08/federal-trade-commission-announces-final-rule-banning-fake-reviews-testimonials

The Federal Trade Commission today announced a final rule that will combat fake reviews and testimonials by prohibiting their sale or purchase and allow the agency to seek civil penalties against knowing violators.

"Fake reviews not only waste people's time and money, but also pollute the marketplace and divert business away from honest competitors," said FTC Chair Lina M. Khan. "By strengthening the FTC's toolkit to fight deceptive advertising, the final rule will protect Americans from getting cheated, put businesses that unlawfully game the system on notice, and promote markets that are fair, honest, and competitive."

[Jarhead0331]

^This seems like it will be nearly impossible to enforce and although it seems largely aimed at AI-generated reviews, I can see some First Amendment arguments here, as well.

[ArizonaTank]

^This seems like it will be nearly impossible to enforce and although it seems largely aimed at AI-generated reviews, I can see some First Amendment arguments here, as well.

Will be interesting to see where this goes.

[Redwolf]

I think this weapon is solely intended to be used against companies that openly offer fake review services. That sounds more enforceable.

[Silent Disapproval Robot]

Maybe Grogheads can become a sort of review notary public.  "this review is Jarhead-endorsed with a Gus back guarantee."

[Jarhead0331]

I think this weapon is solely intended to be used against companies that openly offer fake review services. That sounds more enforceable.

That does seem to be the main intent, but I'm not sure if it is "solely" as it will function.

This part of the summary makes me think it may be more broad:

The final rule addresses reviews and testimonials that misrepresent that they are by someone who does not exist, such as AI-generated fake reviews, or who did not have actual experience with the business or its products or services, or that misrepresent the experience of the person giving it.

I'll read the actual final rule when I get some time.

[Tripoli]

For anyone who has insomnia, here is the final rule:
www.ftc.gov/system/files/ftc_gov/pdf/r311003consumerreviewstestimonialsfinalrulefrn.pdf