FTC bans fake online reviews to promote marketplace integrity and consumer trust

The U.S. Federal Trade Commission (FTC) has announced a new rule banning the creation, purchase, and distribution of fake online reviews, aiming to protect consumers and promote a transparent marketplace. The rule targets deceptive practices, such as fake reviews attributed to non-existent people, AI-generated testimonials, or reviews from individuals with no actual experience with the product or service. Violators can now face civil penalties for knowingly engaging in these dishonest tactics.

In addition to cracking down on fake reviews, the FTC's rule prohibits businesses from using manipulative practices, such as legal threats, physical intimidation, or false accusations to influence their online reputation. By holding violators accountable, the FTC seeks to foster honest competition and ensure that companies' reputations are built on genuine consumer feedback rather than coercion or deceit.

The new measures are part of the FTC's broader initiative to create a fair and competitive marketplace, where consumers can make informed decisions based on trustworthy reviews. The FTC emphasized that this approach aims to "ensure integrity in the marketplace" and protect consumers from being misled by false information online.