(NewsNation) — The Federal Trade Commission’s August rule banning fake business reviews is now in effect.
The agency can seek civil penalties against those who knowingly violate the new rules by paying for reviews, buying social media followers, allowing insider reviews and much more.
“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 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.”
FTC fake review rules
Here are some of the rules. Businesses can’t:
- Buy reviews: This rule prohibits buying both positive and negative fake reviews whether that’s through compensation or incentives.
- Misuse social media indicators: Businesses cannot sell or buy “indicators” like followers or views that are generated by bots or hijacked social media accounts.
- Misrepresent reviews: The rule prohibits businesses from making it seem as though the reviews shown on their website are reflective of all reviews submitted.
- Allow insider reviews: Any reviews made by company insiders — including employees and their friends and family — who “fail to clearly and conspicuously disclose the giver’s material connection to the business” are not allowed.
- Suppress negative reviews: Businesses can’t use “unfounded or groundless legal threats, physical threats, intimidation, or certain false public accusations” to prevent negative reviews from being made.
- Generate AI reviews: Businesses can’t make or buy reviews “that misrepresent that they are by someone who does not exist,” like those generated by artificial intelligence.
The FTC’s full guidance is available here.
The Associated Press contributed to this report.