The FTC is FINALLY Banning Fake Reviews

The FTC just released a ruling that they will be banning fake reviews. This is important because there are companies that will pay people (or even A.I.) to write positive reviews on retailer websites. This can lead to an average consumer seeing an inflated rating of a sub-par product and they may buy something that is terrible quality or even dangerous.

The FTC is addressing this by prohibiting the following:

1. Fake or Fale Consumer Reviews, Consumer Testimonials, and Celebrity Testimonials.

2. Buying Positive or Negative Reviews

3. Insider Reviews and Consumer Testimonials

4. Company-Controlled Review Websites

5. Review Supression

6. Misuse of Fake Social Media Indicators

I don’t typically like government agency regulation, and it’s possible this will be a disaster or ineffective, but I am happy to see some action being taken as I have seen and shared publicly information about companies buying 5-start reviews with free products or refunds.

BSP-198: https://youtu.be/PB7CGGGaFaw?si=bye0n-9_wjOO_gXN&t=48
FTC Summary: https://www.ftc.gov/news-events/news/press-releases/2024/08/federal-trade-commission-announces-final-rule-banning-fake-reviews-testimonials
FTC Ruling: https://www.ftc.gov/system/files/ftc_gov/pdf/r311003consumerreviewstestimonialsfinalrulefrn.pdf