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Companies Could Face Over $43K in Fines Per Fake Review as FTC Cracks Down on Practice

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'Fake reviews and other forms of deceptive endorsements cheat consumers and undercut honest businesses,' said Samuel Levine of the FTC.

Businesses could face over $43,000 in fines per each fake review or deceptive endorsement as the Federal Trade Commission cracks down on 'an explosion' of businesses using social media to promote themselves through misleading messages.The FTC said it has sent formal warnings to about 700 companies for false advertising penalty offenses, notifying businesses that they could face penalties of up to $43,792 for each violation.

For more reporting from the Associated Press, see below. The FTC said it has warned hundreds of major corporations and smaller businesses that they could face fines if they use bogus endorsements to deceive consumers.'The rise of social media has blurred the line between authentic content and advertising, leading to an explosion in deceptive endorsements across the marketplace,' the FTC said in a news release Wednesday.

 

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