The Federal Trade Commission has unanimously voted to ban marketers from using fake reviews, including those generated with AI technology, to promote their products and services. The new rule will go into effect 60 days after it is published in the Federal Register, likely starting in mid-October. This ban aims to prevent fake reviews from wasting people’s time and money, while also protecting honest competitors in the marketplace.
In addition to prohibiting reviews written by non-humans, the FTC’s rule also forbids companies from paying for positive or negative reviews to falsely boost or denigrate a product. Marketers are also not allowed to exaggerate their influence by paying for bots to inflate their follower count. Violations of the rule could result in fines for each offense, which could add up quickly for companies with many reviews.
The rise of e-commerce, influencer marketing, and generative AI has led to an increase in fake reviews being used to deceive consumers. Some e-commerce companies, like Amazon, have taken action against fake reviews themselves, including suing Facebook group administrators who brokered fake reviews.
With the new FTC rule in place, companies will now face stricter government oversight to ensure compliance with the ban on fake reviews. This rule will strengthen the FTC’s ability to enforce the ban internally rather than relying on individual cases prosecuted through the Department of Justice. The announcement of this rule coincided with the White House’s first “Creator Economy Conference,” where administration officials engaged with online influencers and digital content professionals to address industry concerns.
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