FTC Bans Fake Reviews
New rule also targets paid reviews.
In 2023, TINA.org submitted two comments to the FTC supporting a proposed rulemaking to address fake reviews. In its comments, TINA.org discussed its experience investigating such deceptive marketing tactics, as well as statistics showing how effective they are in convincing consumers to make purchases. TINA.org also expressed support for an FTC rule as it would substantially improve the agency’s ability to combat and deter deception and unfairness in this area, and recommended certain adjustments to the proposed rule in order to maximize its benefits for consumer protection and fair competition in the marketplace.
To read TINA.org’s January 2023 Comment, click here.
To read TINA.org’s September 2023 Comment, click here.
On August 14, 2024, the FTC announced a final rule that will combat fake reviews and testimonials and allow the agency to seek civil penalties against knowing violators. The rule prohibits businesses from buying or selling fake reviews, procuring them from company insiders, or posting the reviews if they knew or should have known the reviews were fake. The final rule also prohibits businesses from providing compensation in exchange for reviews — even if the condition is only implied. The rule also prohibits businesses from misrepresenting their own review websites as independent, and prevents businesses from suppressing bad reviews. Finally, the rule prohibits the buying and selling of fake social media indicators.
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