- Prohibited Activities
- Reaction to New Rules
- Rule Implementation
The Federal Trade Commission (FTC) has announced new rules aimed at combating fake reviews and social media influence metrics. Civil penalties will now apply to those posting AI-generated fake reviews.
Prohibited Activities
According to the FTC's press release, the new rules prohibit the sale and purchase of fake reviews and social media influence metrics like followers and views generated through hijacked accounts or bots. This prohibition extends to those who knew these metrics were fake and intended to misrepresent the buyer's influence.
Reaction to New Rules
Marketing and e-commerce lawyer Rob Freund stated on X: 'Anyone who is juicing their views, plays, subscriptions, saves, likes, etc., through any inauthentic means will be a violator.' The X community also expressed their opinions on the new rule, with most comments being positive. X user Jonathan Rose Dunlap said this is a huge win for retail shoppers.
Rule Implementation
The FTC's new rules ban fake reviews, including AI-generated ones, written by individuals without actual experience with the business or its products. Businesses are prohibited from selling or creating such reviews, and from purchasing them if they know they are fake. According to the release, the rules will go into effect 60 days after their publication in the Federal Register, possibly as early as October.
The new FTC rules aim to protect consumers from deceit and maintain fair competition in the market.
