FTC, Under Biden Admin, Bans Fake Consumer Reviews and AI-Generated Testimonials

Aug 14, 2024, 06:26 PM

The U.S. Federal Trade Commission (FTC) has announced a final rule banning fake and false consumer reviews and testimonials, including those generated by artificial intelligence. This rule, finalized on August 14, 2024, aims to enhance the reliability of online reviews, which are crucial for consumers making informed purchasing decisions. The new Biden admin regulation prohibits the writing, buying, or selling of fake reviews and the suppression of negative reviews. Additionally, it extends to banning the purchase and sale of fake followers and any metrics used by the public to assess social media influence. The FTC's move is part of a broader effort to deter deceptive practices and strengthen enforcement, allowing the agency to seek civil penalties against violators.