The Federal Trade Commission has made it illegal to buy or sell testimonials, including those made by artificial intelligence.
It is important to be aware that online retailers who do not perceive any problem with producing fake evaluations from fictitious consumers are no longer permitted to engage in this practice. The implementation of a federal prohibition on fraudulent online reviews has taken place.
Back in August, the Federal Trade Commission (FTC) released a final regulation regarding the purchase and sale of online reviews. The rule went into effect sixty days after it was published in the Federal Register. There was not a single vote that was against the regulation among the commissioners of the agency.
A rule prohibits companies from generating, purchasing, or selling reviews and testimonials that are attributed to individuals who do not exist. This includes reviews and testimonials that are generated by artificial intelligence. False celebrity endorsements are not permitted, and businesses are not permitted to receive payment or any other form of incentive for actual customers to provide either positive or negative feedback.
Particular evaluations and testimonials that are made by individuals who have strong links with a firm and do not include a disclaimer are not acceptable. There are also limitations placed on the capability of obtaining feedback from employees’ immediate family members.
There are restrictions on the ability to suppress unfavorable evaluations from consumers that are included in the rule. Additionally, it makes it illegal for individuals to intentionally sell or buy phony followers and views with the intention of exploiting social media accounts for the purpose of increasing their impact or prominence for commercial objectives.
It is possible that the penalties for breaking these procedures will be quite expensive. At this time, the highest civil penalty that can be imposed for each infraction is $51,744.
Chair of the Federal Trade Commission Lina Khan stated, “Fake reviews not only waste people’s time and money, but they also pollute the marketplace and divert business away from honest competitors.” This statement was made when the rule was finalized. The final rule will protect Americans from being deceived, put corporations that illegally game the system on notice, and promote markets that are fair, honest, and competitive. This will be accomplished by enhancing the regulatory tools that the Federal Trade Commission (FTC) uses to combat deceptive advertising.
Consumers will benefit from the rule, which is a step in the right direction because it will make it possible for reviews to be more reliable in the future. The Federal Trade Commission (FTC) recently announced a final regulation that would make it just as simple for individuals to terminate a subscription as it is for them to sign up for one. This is a separate success for consumer rights.