Image: Cath Virginia / The Verge
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.
The new rule could help address AI-generated reviews that pop up on sites across the web, including Amazon. Here are the types of deceptive practices the FTC’s new rule prohibits:
Offering incentives to customers in exchange for writing positive or negative feedback.
Reviews and testimonials written by “insiders” at a company who fail to “clearly and conspicuously” disclose their affiliation with the business.
Company-controlled review websites, which often advertise themselves as providing independent…
Image: Cath Virginia / The Verge
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.
The new rule could help address AI-generated reviews that pop up on sites across the web, including Amazon. Here are the types of deceptive practices the FTC’s new rule prohibits:
Offering incentives to customers in exchange for writing positive or negative feedback.
Reviews and testimonials written by “insiders” at a company who fail to “clearly and conspicuously” disclose their affiliation with the business.
Company-controlled review websites, which often advertise themselves as providing independent…
Continue reading…
The consumer protection agency has a new way to go after companies that create fake feedback, whether it’s using AI or other slimy tactics.
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.
The new rule could help address AI-generated reviews that pop up on sites across the web, including Amazon. Here are the types of deceptive practices the FTC’s new rule prohibits:
The FTC first proposed a ban on fake reviews last year. However, it’s still not clear how the agency will enforce this rule on global marketplaces like Amazon, where many businesses that post fake reviews are located outside the US. Amazon has long struggled with fake reviews on the platform and has attempted to use AI to detect inauthentic feedback. In 2022, Amazon took action against the admins of thousands of Facebook groups selling fake product reviews, while the FTC also fined an Amazon seller for “review hijacking” last year.
“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.
The Verge – All Posts