FTC Bans Fake Reviews, Adds 'Click to Cancel' Rule

The Federal Trade Commission (FTC) has introduced significant new regulations to enhance consumer protection in the digital marketplace. Effective October 21, a key rule prohibits fake online reviews, including AI-generated ones, and the manipulation of social media followers, aiming to restore transparency and trust. Violators face civil penalties, targeting businesses that artificially inflate their reputation through dishonest means. Concurrently, the FTC's 'Click to Cancel' rule mandates that subscription cancellations must be as easy as sign-ups, though it faces legal challenges from industry groups claiming it exceeds FTC's authority. Despite opposition, the FTC asserts these rules will protect consumers and promote fairness in commerce.