Rule Implementation
The (FTC) has implemented a rule banning fake online reviews, effective Monday, aiming to promote fair and honest marketplaces.
The rule, announced in August, prohibits reviews from non-existent individuals, AI-generated content, and those without genuine experience, aiming to penalize businesses that manipulate reviews.
Scope and Enforcement
Businesses are forbidden from creating, selling, or buying fake reviews, with penalties for those who disseminate or procure such reviews.
The FTC's enforcement includes actions against companies using legal threats, intimidation, or false accusations to suppress negative reviews, with a reporting mechanism for violations.