FTC cracking down on fake online reviews
Businesses that buy, sell or promote phony online reviews now run the risk of incurring hefty financial penalties, the Federal Trade Commission said in announcing a ban on such practices.
The final rule issued by the federal watchdog on Wednesday prohibits marketers from engaging in deceptive practices including using AI-generated reviews, censoring negative reviews and paying third parties for positive ones.
“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 M. Khan said in a news release. “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.”
The problem is widespread, with new types of artificial intelligence toolsable to write human-sounding, bogus product reviews, enabling bad actors …