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FTC bans fake online reviews, inflated social media influence; rule takes effect in October (www.cnbc.com)

submitted 4 months ago by [email protected] to c/[email protected]

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[–] [email protected] 29 points 4 months ago

Along with prohibiting reviews written by nonhumans, the FTC’s rule also forbids companies from paying for either positive or negative reviews to falsely boost or denigrate a product. It also forbids marketers from exaggerating their own influence by, for example, paying for bots to inflate their follower count.

Violations of the rule could result in fines being issued for each violation, according to the rule. This means that for an e-commerce site with hundreds of thousands of reviews, penalties for fake or manipulated reviews could quickly add up.