The Federal Trade Commission rule targeting fake reviews and paid testimonials went into effect this week. The rule bans the creation, purchase or sale of reviews and opinion pieces attributed to fictional customers, or real ones who are financially compensated without plainly disclosing the transactional nature of the relationship. The rule, which subjects offenders to civil penalties, also takes aim at businesses who use threats or coercion to thwart the publication of negative reviews that are genuine. The new FTC rule was approved by unanimous vote in August. Continue reading FTC Rule Prohibiting Fake and Paid Reviews Goes into Effect

Acting in advance of a California law that goes into effect on January 1, cloud gaming platform Steam has begun posting a notice that its customers are purchasing a license, not a product. The language that appears in the Steam shopping cart now includes the advisory that “purchase of a digital product grants a license for the product on Steam.” Signed into law last month, California’s AB 2426 is categorized a consumer protection law against false advertising for digital goods. Specifically, it requires online sellers provide a “conspicuous” advisory that licenses are limited in duration and can be revoked. Continue reading Steam Preemptively Adds License-Only Terms to Online Store

In a unanimous vote, the Federal Trade Commission has banned the use of fake reviews, such as those generated by artificial intelligence, and also prohibits reviews or testimonials that are paid for, even if written by humans. The new rule, finalized Wednesday, also reins in other deceptive practices, like paying for fake social media followers, in an effort to stem misleading practices that are increasingly used by marketers. Generative AI has made manufactured reviews easily available, though the agency’s readiness to seek fines against knowing violators may make fabulists think twice before using them. Continue reading FTC Rule Takes Aim at Fake Reviews, Influence Manipulators

The Federal Trade Commission announced yesterday that game maker TinyCo agreed to pay $300,000 to settle charges that it violated children’s privacy rules by improperly collecting information. The company was accused of violating the Children’s Online Privacy Protection Act (COPPA). In a separate case, Yelp agreed to pay a $450,000 penalty for doing the same through its consumer review app. Both companies were charged with collecting personal info from children under 13 without parental consent. Continue reading Yelp and TinyCo Face Fines After Violating Children’s Privacy