FTC Enforces Ban on Fake Online Reviews with Hefty Fines

The new rule aims to protect consumers by penalizing misleading reviews, including those generated by AI or attributed to non-existent individuals.

Under the new FTC rule, businesses are prohibited from creating, buying, or selling fake reviews, with penalties reaching up to $51,744 per infraction.
The regulation targets AI-generated reviews, fake endorsements, and testimonials from individuals without genuine product experience.
Companies are also banned from suppressing negative reviews or using intimidation to remove critical feedback.
The rule extends to social media, prohibiting the purchase of fake followers or views to inflate perceived influence.
Consumers are encouraged to report violations to the FTC, as the agency seeks to enforce fair and transparent business practices.