FTC bans fake online product reviews
The agency will enforce fines of up to $51,744 per violation


What happened
Companies are now prohibited from paying for or selling online product reviews and generating other types of fake testimonials under a Federal Trade Commission rule that went into force Monday. The FTC rule, finalized and unanimously approved in August, will be enforced through civil penalties, including fines of up to $51,744 per violation.
Who said what
"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 said in August. The new 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."
Reviews are "increasingly important in almost all of our purchase decisions," Sandy Jap, an Emory University marketing professor, told The Wall Street Journal, and fake reviews create a "noisier environment for consumers" and muddle trust. The FTC also now prohibits hiding or suppressing bad reviews, reviews written by undisclosed company insiders, and "buying fake indicators of social media influence," like bot-generated followers or views.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
What next?
The FTC finalized a "click to cancel" rule last week that will take effect in about six months, giving companies time to come up with mechanisms to cancel subscriptions that are "at least as easy" as signing up for them, with no tricks or traps. The rule, approved 3-2 along party lines, is "part of President Joe Biden's administration's efforts to crack down on 'junk fees,'" USA Today said.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
Book reviews: 'The Thinking Machine: Jensen Huang, Nvidia, and the World’s Most Coveted Microchip' and 'Who Is Government? The Untold Story of Public Service'
Feature The tech titan behind Nvidia's success and the secret stories of government workers
By The Week US
-
Mario Vargas Llosa: The novelist who lectured Latin America
Feature The Peruvian novelist wove tales of political corruption and moral compromise
By The Week US
-
How to see the Lyrid meteor shower
The explainer A nice time to look to the skies
By Devika Rao, The Week US
-
Not invincible: Tech burned by tariff war
Feature Tariffs on Asian countries are shaking up Silicon Valley, driving up prices and deepening global tensions
By The Week US
-
Why won't Apple make iPhones in America?
Today's Big Question Trump offers a reprieve on tariffs, for now
By Joel Mathis, The Week US
-
Test flight of orbital rocket from Europe explodes
Speed Read Isar Aerospace conducted the first test flight of the Spectrum orbital rocket, which crashed after takeoff
By Peter Weber, The Week US
-
Apple pledges $500B in US spending over 4 years
Speed Read This is a win for Trump, who has pushed to move manufacturing back to the US
By Rafi Schwartz, The Week US
-
Microsoft unveils quantum computing breakthrough
Speed Read Researchers say this advance could lead to faster and more powerful computers
By Rafi Schwartz, The Week US
-
Elon Musk's DOGE website has gotten off to a bad start
In the Spotlight The site was reportedly able to be edited by anyone when it first came online
By Justin Klawans, The Week US
-
Decline of dating apps: will AI be our knight in shining armour?
In The Spotlight New features have raised concerns about privacy and manipulation
By Chas Newkey-Burden, The Week UK
-
Romance scammers are taking advantage of Americans
Under the Radar The FBI and tech companies have warned against these scams
By Justin Klawans, The Week US