The Federal Trade Commission (FTC), as part of the fight against fake reviews and fake reviews of consumers and celebrities on websites and marketplaces, approved new rules, approved during the meeting by an absolute majority of votes, writes Engadget. The rules will come into force in 60 days.
Image source: FTC
The FTC’s new rules prohibit the buying and selling of fake consumer reviews, including the use of AI-generated consumer and celebrity reviews of products or services by marketplaces. They also prohibit “providing compensation or other incentives based on the writing of consumer reviews expressing a particular opinion, whether positive or negative.” It also prohibits “companies from misrepresenting that a website or organization they control provides independent reviews or opinions” about products or services. Violation of the new rules entails a fine of up to $50 thousand.
The FTC formally announced plans to seek new rules to curb such practices last October. The Commission has been fighting fake reviews and reviews for many years. In 2019, the FTC fined Amazon seller Cure Encapsulations $12.8 million for paying for fake reviews of its weight-loss products on the website amazonvierifiedreviews.com.
The FTC also investigated dietary supplement maker The Bountiful Company’s publication of reviews and ratings of its products on Amazon, which resulted in a $600,000 fine, and skin-care maker Sunday Riley’s employees creating fake online reviews at its direction.
It’s not just the government that’s fighting fake reviews and reviews. For example, service recommendation site Yelp has created a database of companies that have received warnings for posting or purchasing fake reviews.