The U.S. Federal Trade Commission (FTC) has issued a final rule to combat “deceptive
acts or practices involving consumer reviews or testimonials.”
Approved by a unanimous 5-0 vote, the rule will take effect 60 days after its publication in the Federal Register.
The new regulation targets a range of practices, including the use of AI-generated and fake reviews, censoring honest negative feedback, and compensating third parties for positive reviews.
It prohibits businesses from buying or selling reviews, whether negative or positive, and mandates that company insiders must disclose their connection when writing reviews. The rule also bans the operation of company-controlled review sites that falsely claim independence and the use of legal threats to suppress negative feedback.
