FTC Enforces New Rules on AI and Fake Reviews

The Federal Trade Commission targets deceptive AI marketing and launches legal actions against five companies for misleading practices.

New FTC rules banning fake reviews, including those generated by AI, will take effect on October 24.
The FTC has initiated legal action against five companies for deceptive AI claims, with two already settling and three opting for court trials.
The new regulations prohibit businesses from creating, buying, or selling misleading reviews and incentivizing false testimonials.
Companies like Google and Yelp support the changes, though some experts argue the rules don't go far enough in regulating third-party platforms.
The FTC's crackdown aims to protect consumers and ensure fair competition by penalizing companies that use AI for fraudulent activities.