To safeguard consumers and restore trust in online reviews, the Federal Trade Commission (FTC) has implemented new guidelines that crack down on deceptive practices.
The FTC’s new guidelines come at a crucial time when online product reviews are often manipulated to deceive consumers. As online shopping grows, the integrity of reviews has become essential for helping people make informed purchasing decisions. The new regulations specifically target businesses that use generative AI to create fake testimonials or reviews. These deceptive practices often involve attributing reviews to non-existent individuals or having real people falsely claim expertise or experience with a product they haven’t used.
A striking example of such deception can be seen in the operations of AdVon Commerce. Multiple investigations, including those by Futurism, uncovered that this third-party media company had published AI-generated reviews across platforms like Sports Illustrated and The Miami Herald. Worse, these reviews were often attributed to fake authors with fabricated profiles and credentials.
“Reviews and testimonials that misrepresent that they are by someone who does not exist, such as AI-generated fake reviews, or who did not have experience with the business or its products or services, or that misrepresent the experience of the person giving it are now explicitly prohibited,” the FTC ruling states.
In addition to banning AI-generated content, the guidelines extend to other dishonest practices. For example, companies can no longer buy fake positive or negative reviews, purchase social media followers, or threaten consumers into leaving favorable ratings. These rules cover not only direct reviews but also behind-the-scenes manipulation, such as a company soliciting reviews from insiders without disclosing their connection to the business.
Another common form of abuse, now forbidden by the FTC, involves businesses promoting their products under the guise of independent editorial reviews. This happens when websites review products they have a vested financial interest in without informing the reader. AdVon Commerce is an example of this as well, as it also runs a company called Seller Rocket, which places paid products in reviews without proper disclosure.
“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 emphasized.
The new guidelines aim to hold accountable those who engage in such fraudulent behavior and protect consumers and legitimate businesses from harm.