FTC Announces Final Rule Prohibiting Fake, AI-Generated, and Misleading Product Reviews
The Federal Trade Commission (FTC) has announced a final rule today that prohibits fake and AI-generated product reviews and testimonials, as well as stops businesses from purchasing reviews that express a particular sentiment, good or bad.
In a press release today, the FTC outlined its final rule following multiple notices of proposed rulemaking in 2022 and 2023. This final rule comes after an informal hearing back in February 2024 on the subject with public comments on the proposals resulting in changes to the final version.
The final rule prohibits a number of activities related to falsifying product reviews in various ways. This includes the prohibition of reviews from people who don’t exist (such as AI-generated fake reviews) or who did not have the experience with the product they claim they did. Companies are also banned from paying for reviews that convey a particular sentiment, positive or negative, and from having company insiders write reviews without disclosing their connection to the company. And finally, the rule stops companies from using threats (legal or otherwise) to prevent or remove a negative review, and from buying “fake indicators” of social media influence such as followers or views generated by bots.
Fake reviews not only waste people’s time and money, but also pollute the marketplace and divert business away from honest competitors.
You can read the full text of the final rule, 16 CFR Part 465, here.
“Fake reviews not only waste people’s time and money, but also pollute the marketplace and divert business away from honest competitors,” said FTC Chair Lina Khan. “By strengthening the FTC’s toolkit to fight deceptive advertising, 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 final rule, which passed in a 5-0 commission vote and will be implemented 60 days after the date of its publication, will have a significant impact on product reviews found online, including across gaming and tech. In the FTC’s public comment period, consumer comments included remarks from individuals who expressed frustration with the difficulty of determining the quality of a product prior to purchase. Many described having felt deceived by reviews they perceived to be inaccurate or falsified in some way by businesses.
“Disgusted by the blatantly fabricated “satisfied customer” reviews which nearly always find their way to the top of the lists,” said one commenter. “Regulate. Reform. Restructure. Hell yeah.”
Rebekah Valentine is a senior reporter for IGN. Got a story tip? Send it to rvalentine@ign.com.
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