The FTC’s fake review crackdown begins this fall

The Federal Trade Commission has announced a final rule banning companies from creating or selling fake reviews, including AI-generated ones. Once it goes into effect, the FTC can take action against companies that violate the policy.

“Fake reviews not only waste people’s time and money, but also pollute the marketplace and divert business away from honest competitors,” FTC Chair Lina Khan says in the announcement. “The final rule will protect Americans from getting cheated, put businesses that unlawfully game the system on notice, and promote markets that are fair, honest, and competitive.”

The FTC’s finalized rule, which was approved with a 5–0 vote, will go into effect 60 days after it’s published in the federal register. Under the rule, the FTC can seek a maximum of up to $51,744 per violation.