FTC Implements Strict Ban on Fake Online Reviews and Social Media Manipulation

New rule prohibits AI-generated reviews, paid testimonials, and fake social media followers, with penalties up to $51,744 per violation.

The Federal Trade Commission's new rule targets deceptive practices in online reviews and social media engagement.
The ban includes fake reviews, AI-generated content, and paid positive or negative testimonials.
Companies are prohibited from suppressing negative reviews or using intimidation tactics against reviewers.
Businesses must disclose any material connections between reviewers and the products or services they endorse.
The rule will be enforced starting mid-October, with significant penalties for violations.