FTC Announces Final Rule Banning Fake Reviews
The new rule will make it easer to go after and punish egregious offenders but many players in the "fake review economy" will still fall under the radar.
Today, the FTC announced the final details of their new rule against fake reviews. The final rule prohibits:
- Fake or false consumer reviews, consumer testimonials, and celebrity testimonials
- Buying positive or negative reviews
- Insider reviews and consumer testimonials
- Company-controlled review websites
- Review suppression
- Misuse of fake social media indicators
Incentives remain acceptable as long as they're not predicated on the "reviews expressing a particular sentiment" and it "clarifies that the conditional nature of the offer of compensation or incentive may be expressly or implicitly conveyed."
Why Is There Now a 'Rule'?
The FTC has been getting more aggressive toward fake reviews. Part of that effort was to go through the many steps, hearings and public comments needed to implement a rule that removes any ambiguity. This process started in late 2022 and just concluded.