The U.S. is set to crack down on fake reviews, a long-standing issue in e-commerce. The Federal Trade Commission (FTC) will soon prohibit companies from creating or selling false reviews, including those generated by AI. This new regulation also bans the purchase or sale of fake followers and views on social media.
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Companies that violate these rules face substantial fines of up to $51,744 per infraction.
The FTC has not detailed how it will differentiate between fake and genuine reviews, as this will be a challenging task.
FTC Chair Lina Khan states in an article on Ehandel that fake reviews waste people's time and money, taint the market, and disadvantage honest competitors.
The new regulations, effective from mid-October, have been positively received by major players like Google, Amazon, and Yelp.
Source: www.ehandel.se