The Federal Trade Commission’s new rule prohibiting the practice of writing or spreading fake online reviews for products and services took effect on Friday. The rule aims to crack down on deceptive advertising practices that mislead consumers. It prohibits the use of false endorsements, including fake reviews, as well as suppressing negative reviews. Companies are now required to disclose any incentives they offer to customers for writing reviews. The FTC can seek civil penalties of up to $43,792 per violation. The rule applies to reviews of any product or service, including those related to travel, childcare, pets, and video games. It also covers reviews of businesses like restaurants and doctors’ offices. The FTC has brought dozens of cases against companies for fake review practices in recent years. The new rule is expected to provide more clarity and strengthen the agency’s ability to protect consumers from deceptive marketing tactics.
Source: https://abcnews.go.com/US/wireStory/ftcs-rule-banning-fake-online-reviews-effect-115009298