The federal regulation is intended to protect consumers and promote fair competition in the marketplace.
A new federal rule prohibiting fake online reviews went into effect this month after the Federal Trade Commission’s (FTC) issuance of the ban in August. The rule enables the FTC to impose civil penalties on individuals or businesses that knowingly violate its provisions.
“Fake reviews not only waste people’s time and money, but also pollute the marketplace and divert business away from honest competitors,” FTC Chair Lina Khan said about the rule in August. She also added that the rule will “protect Americans from getting cheated, put businesses that unlawfully game the system on notice, and promote markets that are fair, honest, and competitive.”
Under the rule, businesses are forbidden from using or selling reviews written by non-existent individuals, artificially generated reviews, or testimonials from individuals lacking genuine experience with the product or service. Also, companies that buy or distribute fake reviews, or use intimidation tactics to silence criticism, will face penalties.
As the Lord Leads, Pray with Us…
- For Chair Khan as she oversees the FTC and enforcement of trade regulations.
- For FTC commissioners as they seek to provide protections for consumers and businesses in the marketplace.
Sources: Federal Trade Commission, AP News
