In August, the Federal Trade Commission (FTC) announced new regulations banning the creation or manipulation of fake reviews on the internet. This means that as of now, anyone involved in writing, buying, or selling phony reviews can face fines as high as $51,744. This measure was put in place to promote fairness in the market and to protect consumers from misleading information.

What's Included in the New Rule?

The regulation applies not only to traditional human-written reviews but also to AI-generated ones which have recently become pervasive on platforms such as Amazon. Furthermore, endorsements by celebrities that aren't genuine, and testimonials posted by any associates of a company are prohibited unless accompanied by an explicit disclaimer. Companies are also forbidden from offering incentives for posting false reviews or suppressing negative feedback. This new rule intends to address and curb the harmful implications of dishonest online reviews which skew consumer opinion and create unfair business edges.

Impact on Businesses and Consumers

According to FTC Chair Lina M. Khan, this rule empowers the FTC to tackle deceptive advertising more efficiently, ensuring consumers are not defrauded, while warning businesses against attempting to unlawfully cheat the system. Fake reviews not only mislead buyers but also disrupt fair competition, which is why such drastic measures have been deemed necessary.

Broader Efforts to Curb Fake Reviews

This action by the FTC is part of a wider movement requesting digital platforms to take responsibility. Recently, Google updated its review policies; businesses found with fake reviews might find their profiles temporarily restricted from receiving or maintaining reviews, alongside displaying warnings for users. Additionally, web browsers like Firefox have started integrating tools like the 'Review Checker,' which filters out misleading reviews and counterfeit items, thus contributing to the effort against fraudulent content.

By taking these steps, the FTC and digital platforms aim to establish an online environment where consumers can rely on the authenticity of the information they receive and where businesses can compete on an unbiased, transparent playing field.

This article was originally reported on by Gizmodo.