The Federal Trade Commission's rule prohibiting fake, paid-for or AI-generated reviews went into effect yesterday. The rule also bans business from making threats against people posting real reviews—a surprisingly common occurence.
"Fake reviews not only waste people's time and money, but also pollute the marketplace and divert business away from honest competitors," said FTC Chair Lina Khan. The rule will "protect Americans from getting cheated, put businesses that unlawfully game the system on notice, and promote markets that are fair, honest, and competitive."
ABC News summarizes the ban:
Specifically, the rule bans reviews and testimonials attributed to people who don't exist or are generated by artificial intelligence, people who don't have experience with the business or product/services, or misrepresent their experience.
It also bans businesses from creating or selling reviews or testimonials. Businesses that knowingly buy fake reviews, procure them from company insiders or disseminate fake reviews will be penalized. It also prohibits businesses from using "unfounded or groundless legal threats, physical threats, intimidation, or certain false public accusations."
The fake reviews are all still right there, of course, raising the question of actual enforcement. If you run into an obviously fake review or get once of those little notes with a gadget, offering you something in return for a positive review, snitch at https://reportfraud.ftc.gov and see what happens.
I wonder if the rule will be applied to the review switcheroo trick that sellers use to transfer old reviews to substitute products.
