The United States Federal Trade Commission (FTC) has announced new rules aimed at combating fake reviews and social media influence metrics. These measures are intended to prevent consumer deception and unfair competition.
New FTC Rules
On August 14, the FTC announced the adoption of new federal regulations that will take effect 60 days after being published in the Federal Register. These rules prohibit the sale and purchase of fake social media influence indicators, including followers and views generated by bots or hijacked accounts.
Prohibited Actions
The rules prohibit selling or buying fake influence metrics when the buyer knew or should have known they were fake. Fake reviews generated by artificial intelligence and reviews from individuals without actual experience with the product or service are also banned. The FTC specifically mentioned banning fake testimonials from celebrities and company insiders. Review websites also fall under the new guidelines.
Penalties for Violations
Violating the new rules can result in fines of up to $50,000 per violation. FTC Chair Lina Khan stated, 'Fake reviews not only waste people’s time and money but also pollute the marketplace and divert business away from honest competitors. The final rule will protect Americans from getting cheated.' The FTC has been actively pursuing fake review practices since last October.
The new FTC rules aim to combat social media fraud and protect consumers from dishonest practices. These measures are expected to create a more transparent and fair marketing environment.
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