The Federal Trade Commission unanimously voted to ban marketers from using fake reviews, generated with AI technology or through other misleading practices. The final rule will go into effect in mid-October and prohibits non-human reviews and companies from paying for positive or negative reviews. Violations could result in fines for each offense, impacting companies with large numbers of reviews. E-commerce and influencer marketing have led to an increase in fake reviews, prompting the need for stricter regulations.
Fake reviews are already illegal, and companies like Amazon have taken legal action against individuals brokering fake reviews. The new FTC rule will provide stricter government oversight and strengthen enforcement. The rule will streamline the process of prosecuting offenders and protecting consumers from misleading marketing tactics. The announcement coincided with the White House’s Creator Economy Conference, where officials listened to concerns from online influencers and digital content professionals. Overall, the new rule aims to combat deceptive marketing practices, protect consumers, and uphold the integrity of online reviews.
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