The FTC plans to slap companies with hefty fines for using fake reviews | Engadget

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The FTC plans to slap companies with hefty fines for using fake reviews

Explicitly, the FTC aims to ban"businesses from writing or selling consumer reviews or testimonials by someone who does not exist, who did not have experience with the product or service, or who misrepresented their experiences." Similarly, companies won't be allowed to obtain or disseminate reviews and testimonials that they"knew or should have known that they were fake or false.

Managers and officers won't be allowed to post reviews of their company's products without clear disclosures and nor can they ask family members or employees to do so in certain circumstances. Under the proposed rule, companies won't be allowed to run websites that claim to offer independent reviews of categories of products and services that include their own offerings.

In addition, the FTC seeks to ban companies from using fake followers and views to fluff up their social media numbers."The proposed rule also would bar anyone from buying such indicators to misrepresent their importance for a commercial purpose," the agency said. This is a provision that could have far-reaching consequences beyond commerce — influencers may have to ensure they don't factor in bots when they try to secure brand deals..

 

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