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The U.S. Federal Trade Commission (FTC) has officially banned fake reviews, including those created with AI technology. The goal is to put an end to deceptive practices like censoring negative reviews, paying for positive reviews, and using AI to generate fake feedback.
Long Overdue
After a unanimous 5-0 vote, the new rule will take effect 60 days after being published in the Federal Register. This move is long overdue, as online reviews have become increasingly unreliable. Merchants, especially on platforms like Amazon, have been abusing fake and paid reviews for too long.
What You Need to Know
The finalized rule prohibits various practices, such as:
– No fake or disingenuous reviews, including AI-generated ones.
– Businesses can’t buy or sell reviews, whether positive or negative.
– Insiders writing reviews must disclose their connection to the business.
– Company-controlled review sites claiming independence are not allowed.
– Legal threats to remove negative reviews are prohibited.
– No buying fake engagement like social media followers or likes.
According to the rule, businesses could face a hefty fine of up to $51,744 per violation for fake reviews. Courts will determine the actual penalties based on each case.
Overall, the FTC’s crackdown aims to clean up the online review landscape and make it easier for consumers to trust the feedback they read. Let’s hope this move brings more transparency to the world of reviews!
