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.
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.
-
Mustardy beans and hazelnuts recipeThe Week Recommends Nod to French classic offers zingy, fresh taste
-
Under siege: Argentina’s president drops his chainsawTalking Point The self-proclaimed ‘first anarcho-capitalist president in world history’ faces mounting troubles
-
Sarkozy behind bars: the conviction dividing FranceIn the Spotlight Sarkozy speaks to the press with wife Carla Bruni at his side outside a Paris courtroom after the guilty verdict
-
Trump allies reportedly poised to buy TikTokSpeed Read Under the deal, U.S. companies would own about 80% of the company
-
Google avoids the worst in antitrust rulingSpeed Read A federal judge rejected the government's request to break up Google
-
The Hermit Kingdom's laptop warriorsFeature American firms are unwittingly hiring IT workers with a second job—as North Korean operatives
-
Supreme Court allows social media age check lawSpeed Read The court refused to intervene in a decision that affirmed a Mississippi law requiring social media users to verify their ages
-
How will Ford reinvent EV manufacturing to compete with China?Today's Big Question Henry Ford's assembly line system is being replaced
-
Big Brother is watching: Wi-Fi signals can track you in your homeUnder the radar It could open the door to mass surveillance
-
Tea app hack: user data stolen from women's dating safety appIn The Spotlight Data leak has led to fears users could be targeted by men angered by the app's premise
-
Palantir: The all-seeing tech giantFeature Palantir's data-mining tools are used by spies and the military. Are they now being turned on Americans?
