Particle.news
Download on the App Store
19 ARTICLES
·
9mo ago

FTC Implements Strict Ban on Fake Online Reviews and Social Media Manipulation

New rule prohibits AI-generated reviews, paid testimonials, and fake social media followers, with penalties up to $51,744 per violation.

Image
Image
The seals of the Federal Housing Finance Association (FHFA) and the Federal Trade Commission (FTC) at the organizations' headquarters in Washington, DC, US, on Monday, May 20, 2024. Earlier this month, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency, and the Federal Housing Finance Agency announced that they had taken an initial step toward imposing the long-delayed Dodd-Frank Act rule, which would force banks to claw back some pay from executives taking on too much risk. Photographer: Al Drago/Bloomberg via Getty Images
Image

Overview

  • The Federal Trade Commission's new rule targets deceptive practices in online reviews and social media engagement.
  • The ban includes fake reviews, AI-generated content, and paid positive or negative testimonials.
  • Companies are prohibited from suppressing negative reviews or using intimidation tactics against reviewers.
  • Businesses must disclose any material connections between reviewers and the products or services they endorse.
  • The rule will be enforced starting mid-October, with significant penalties for violations.