FTC Implements $51,744 Fine for Writing or Buying Fake Online Reviews

The Federal Trade Commission’s (FTC) new ban on writing, buying, or selling fake online reviews is now in effect. The rule, announced in August, allows for fines of up to $51,744 for anyone involved in deceptive review practices.

This regulation applies to fake reviews written by individuals or AI, and includes misleading celebrity endorsements or testimonials from a company’s employees, relatives, or friends without disclosure. The rule also prohibits offering incentives for fake reviews and prevents companies from suppressing negative feedback or promoting reviews they know are fraudulent.

FTC Chair Lina M. Khan emphasized that this rule aims to protect consumers from deceptive advertising and foster fair competition. Phony reviews not only mislead shoppers but also give dishonest companies an unfair advantage.

In response, major platforms like Google have started taking similar measures. Google recently introduced penalties for businesses using fake reviews, including suspensions on receiving new reviews and warnings for users.

Browsers like Firefox are also stepping in, offering tools such as Review Checker to automatically filter out fake reviews while shopping online.

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