FTC Bans Fake Reviews and Testimonials

The Federal Trade Commission (FTC) has implemented a new rule prohibiting deceptive practices related to consumer reviews and testimonials, effective October 21. This rule bans the sale or purchase of fake reviews, including those from virtual influencers and individuals who misrepresent their experiences with products or services. It aims to protect consumers from misleading advertising while fostering a fair marketplace for businesses, particularly small enterprises that rely on authentic customer feedback. FTC Chair Lina M. Khan emphasized that fake reviews can damage reputations and divert business from honest competitors. The rule also allows the FTC to impose civil penalties on violators, reinforcing accountability in online review practices.