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

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