US FTC bans fake online reviews to ensure marketplace integrity
The initiative seeks to foster a fair and transparent marketplace by supporting honest competition and safeguarding consumer trust.
The United States Federal Trade Commission (FTC) has introduced a rule banning the creation, purchase, and dissemination of fake online reviews, ensuring that testimonials are genuine and trustworthy. That includes reviews attributed to people who don’t exist, those generated by AI, or individuals with no real experience with the product or service.
The rule empowers the FTC to impose civil penalties on businesses and individuals knowingly engaging in such deceptive practices, holding violators accountable. By cracking down on fake reviews, the FTC protects consumers from being misled and ensures they can make informed purchasing decisions.
That initiative also promotes fair competition by penalising dishonest companies and supporting those operating with integrity, fostering a transparent and competitive marketplace. Additionally, the FTC’s rule goes beyond fake reviews by prohibiting businesses from using manipulative tactics such as unfounded legal threats, physical intimidation, or false accusations to influence their online reputation.
These measures prevent companies from using unethical strategies to control public perception, ensuring that business reputations are based on genuine consumer feedback, not coercion or deceit. The FTC aims to create a market environment that values honesty and fairness through this comprehensive approach.
About author
DW Team
The GIP Digital Watch Observatory team, consisting of over 30 digital policy experts from around the world, excels in the fields of research and analysis on digital policy issues. The team is backed by the creative prowess of Creative Lab Diplo and the technical expertise of the Diplo tech team.