The Federal Trade Commission unanimously voted to ban marketers from using fake reviews generated through AI technology and other deceptive practices to promote their products. The rule will go into effect approximately 60 days after publication in the Federal Register. FTC Chair Lina Khan stated that fake reviews not only deceive consumers but also harm honest competitors. The rule prohibits companies from paying for positive or negative reviews or inflating their influence with bots.
Violations of the rule could result in fines, especially for e-commerce sites with numerous reviews. The use of automated chatbots like ChatGPT to generate fake reviews has become a common practice, leading to consumers purchasing items based on false information. Some e-commerce companies, such as Amazon, have taken legal action against administrators involved in brokering fake reviews.
The new FTC rule will provide stricter government oversight and enforcement to prevent fake reviews. Previously, companies may have self-regulated, but now they will be subject to the FTC’s authority. The announcement coincided with the White House’s “Creator Economy Conference,” where officials engaged with influencers and digital content professionals to address concerns in the industry. With the new rule in place, companies will need to ensure compliance to avoid penalties for using deceptive marketing practices.
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