Scam Squad: New Consumer Review Rule punishes companies that lie about reviews

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The FTC can now issue injunctions and five-figure fines against companies that lie about their reviews, or suppress bad ones.

Published: Oct. 4, 2024 at 7:10 PM EDTCLEVELAND, Ohio - This month a new federal rule goes in to affect to protect customers from fake or inflated customer reviews on companies’ websites and marketing material.The FTC is trying to curb suppressed or AI-generated reviews that fool customers into parting with their hard earned money.

“Now we’re able to get that injunction saying ‘Yeah, don’t do this anymore. But also you’ve been doing it and each time you’ve done it, that’s a violation,’ and there’s fees attached to it, up to almost $52,000 for each violation,” said Sammi Nachtigal with the FTC. The public relations expert says companies can still use AI responsibly, as long as the content they’re generating is honest.He says lead generation, is a legal and ethical use of it.

 

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