FTC Cracks Down on Fake Reviews with Proposed Bans and Hefty Fines

The Federal Trade Commission (FTC) is proposing a new rule to penalize companies for engaging in shady review practices, including buying fake reviews and using deceptive tactics. Under the proposed rule, businesses could face fines of up to $50,000 for each instance of a customer encountering a fake review. The rule aims to crack down on various types of disingenuous reviews, including one-line vague reviews, insider reviews, review hijacking, and company-controlled review websites. The FTC also plans to target companies that try to suppress negative reviews and warns that the emergence of AI chatbots could make it easier for bad actors to write fake reviews. The FTC is currently seeking public comments on the proposal.