The US Federal Trade Commission today announced a final rule that will prohibit marketers from providing fake reviews, adding reviews generated by synthetic intelligence and other deceptive marketing strategies, such as payment robots, in order to inflate the number of followers.
The norm is for the FTC to step up enforcement and impose civil consequences on violators.
“Fake reviews not only waste people’s time and money, they also pollute the marketplace and divert business from fair competitors,” FTC Chairwoman Lina M. Khan said in a statement. By strengthening the FTC’s toolbox to combat deceptive advertising, the ultimate rule will be for Americans to prevent deception, put corporations on notice that illegally abuse the system, and advertise fair, equitable, and competitive markets. »
The final rule covers six facets of synthetic and false marketing, starting with the prohibition of fake or fake customer rules, customer testimonials, and celebrities. The rule prohibits reviews and testimonials from other people that don’t exist, such as fake AI-generated reviews and reviews from other people who don’t enjoy the products or who misrepresent them. Companies are also prohibited from buying, purchasing, or distributing such reviews when they know them to be false or untrue.
Buying positive or negative reviews is also now prohibited, and corporations can no longer offer rebates or other incentives conditional on writing customer reviews that express a specific sentiment, positive or negative. Although the FTC doesn’t provide examples, the rule can simply refer to online influencers.
Expert reviews written through company insiders that do not transparently and visually disclose the donor’s connection to the company are also now prohibited. Leaders or managers also have a limited ability to solicit reviews from workers or family members.
Companies are also now prohibited from creating review or opinion sites presented as independent review sites and offering reviews or reviews on their own products. This tactic is nothing unusual among tech corporations; For example, an online effects search for video editing software in corporations that present so-called product reviews that put their own products in the foreground.
As far as social media is concerned, under the final rule, anyone (not just corporations) will be prohibited from promoting or buying false signs of influence on social media, such as fans or prospects generated through a bot or hacked account. The total industry around buying fake fans and false prospects, who will be greatly affected by the ban, as well as countless influencers and celebrities who use such facilities to present their accounts as more popular than they are.
Lastly, and this is undoubtedly the most serious in terms of legal implications, the removal of reviews is now prohibited. Businesses are now prohibited from making legal threats, physical threats, intimidation, or false or unfounded public accusations to save you or remove a negative customer review. The rule also prohibits businesses from falsely claiming that reviews on a component of their online page constitute all or most of the reviews when negative reviews have been removed.
The FTC voted unanimously 5-0 to adopt the final rule, which will take effect 60 days after the date of its publication in the Federal Register. Assuming it is released soon, the rule is expected to go into effect mid or late. October.
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