FTC says what I’ve been saying: “Fake reviews and testimonials have polluted the marketplace.” They’ve also polluted social media, social & support groups, message boards, discord forums, and even zoom calls in some cases. I’m sure tired of testimonials for products and constant hype trains where people don’t disclose their financial conflicts of interest like they ought to. So I’m glad to see this new rule, and hope there will be penalties imposed to tamp it down.
FTC (Federal Trade Commission) We’ll pay you to give our new rule a good review – By Michael Atleson August 14, 2024 Fake reviews and testimonials have polluted the marketplace. They harm the many consumers relying on them to pick products and providers, subverting people’s ability to make informed decisions. They also hurt competitors who work hard to comply with the law. The FTC has challenged illegal practices regarding reviews and testimonials for several decades. Along with numerous law enforcement actions, we’ve also issued guidance to help businesses do the right thing. We’re not alone. Other regulators in the states and abroad have been trying hard to attack the problem. And whether protected from liability or not, online marketplaces and social media companies also have a crucial role to play, and they could and should do more to stem the tide of deceptive commercial conduct that they’ve allowed to fester on their platforms. But altogether it has not been enough. That’s why, in 2022, we started the process for developing a new federal rule spelling out clearly deceptive practices in this area, authorizing courts to impose civil penalties for knowing violations, strengthening our enforcement actions, and imposing a deterrent effect on bad actors.