Finalizing a rulemaking began in November 2022, the FTC yesterday unanimously approved a rule that (1) prohibits fake or false consumer reviews and testimonials, including those generated by AI and influencers; (2) prohibiting businesses from paying consumers for reviews based on their expressing a particular sentiment; (3) requiring reviews and testimonials written by company insiders to contain disclosures; prohibiting certain corporate insiders from giving such reviews; and adding requirements when they solicit reviews from relatives and employees; (4) limiting when companies can refer to reviews or opinions as “independent”; (5) prohibiting threats, intimidation, or false accusations to prevent or remove a negative consumer view; and (6) selling or buying fake indicators of social media indicators.
Violations of the rule may result in civil penalties.
The FTC’s press release is here.
