New FTC Rules Target Misleading Ads and Fake Social Media Influence

2024-08-15 715

The FTC voted unanimously to ban fake reviews, such as those generated with AI technology, and other misleading advertising practices. This includes banning marketers from paying for positive or negative reviews. The ban also prohibits exaggerating influence by paying for bots to inflate follower counts on social media. Violations could result in fines per infraction, meaning penalties for thousands of fake reviews on a site could add up quickly. Amazon has already sued over 10,000 groups brokering fake Facebook reviews for sellers on its site. Review sites like Yelp support the ban, hoping it creates a fairer playing field for honest businesses.

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