The Federal Trade Commission has proposed a new rule that would make it illegal to post fake reviews and testimonials, suppress negative reviews, or pay for positive reviews.
Eight specific practices would be illegal under the new rule:
Until now, the FTC has combatted fake reviews under Section 5 of the FTC Act, which prohibits unfair or deceptive acts or practices. For example, in one recent case, the FTC targeted review hijacking. But the FTC is concerned about the increasing prevalence of fake reviews, especially with the rise of generative artificial intelligence tools such as ChatGPT, that can be used to write product reviews.
After the FTC publishes the proposed rule in the Federal Register, the public will have sixty days to comment.
If you would like more information about the FTC’s proposed rule or would like to file comments in the proceeding, contact an attorney in our Privacy, Data Protection, and Cybersecurity practice group.
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