Online reviews have to be taken with a grain of salt, since there are often as many unreliable as reliable ones. The Federal Trade Commission (FTC) wants to change that though, with a new rule designed to cut down on fake or misleading reviews.
Among other things, the rule prohibits paid reviews or ones written by artificial intelligence. Violators can face a fine of up to $51,744 per transgression.
“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. “By strengthening the FTC’s toolkit to fight deceptive advertising, the final 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.”
