Fake user reviews are now banned in the US

If you’re someone who always reads customer reviews before buying a product, you’ll be happy to know that those reviews should become more trustworthy soon. New legislation aimed at putting an end to fake customer reviews has now gone into effect.

Back in August, the Federal Trade Commission (FTC) announced a new rule that would make it illegal to create, buy, or sell false reviews. With the legislation in place, the FTC would have the power to impose civil penalties on those who knowingly break these rules. In a post on X (formerly Twitter), FTC chair Lina Khan announced that the rule is now active. Along with the announcement, Khan also shared an email address consumers can use to report violations to the FTC.

As a review, here is what is included in the rule:

• Ban on fake reviews: The rule prohibits the creation or distribution of fake reviews — whether they’re generated by AI or not. This includes reviews that don’t accurately reflect a person’s actual experience with a product or service. Businesses can’t create, purchase, or spread these misleading reviews if they know or should know they’re false.
• No incentives for reviews: Companies are now banned from offering rewards or incentives in exchange for specific types of reviews, whether those are glowing or critical. This applies whether the offer is made directly or subtly.
• Disclosure for insider reviews: If a company insider writes a review, it must clearly state their connection to the business. The rule also restricts officers and managers from soliciting reviews from employees or their relatives.
• Transparency on company-controlled review websites: Businesses cannot mislead consumers into thinking that review sites they control provide independent opinions. This rule ensures transparency about which reviews are genuine.
• Protection against review suppression: Companies are now prohibited from using threats or intimidation to remove negative reviews. They also can’t misrepresent the number of reviews on their site by suppressing unfavorable ones.
• Fake social media metrics: The sale or purchase of fake social media metrics, such as followers or views, is banned when the intent is to deceive consumers about the buyer’s influence.

As marketplaces have become littered with less-than-genuine reviews, this could have a big impact on the landscape. However, this rule’s potential to bring much-needed change hinges on the consumer making an effort to report violations. It also requires consumers to be aware of this ruling, which a single social post may not be enough to get the word out. On top of that, it may be difficult to enforce certain parts of the rule, like proving that a business is suppressing negative reviews.

It seems we’ll have to wait and see if this rule manages to change the status quo. If it does, it will probably take a while before we notice anything. Whatever the case, it sure doesn’t hurt to have this rule in effect.