WASHINGTON (AP) 鈥� A federal rule is now in effect.
The Federal Trade Commission in August banning the sale or purchase of online reviews. The rule, which went into effect Monday, allows the agency to seek civil penalties against those who knowingly violate it.
鈥淔ake reviews not only waste people鈥檚 time and money, but also pollute the marketplace and divert business away from honest competitors,鈥� FTC Chair Lina Khan said about the rule in August. She added that the rule will 鈥減rotect Americans from getting cheated, put businesses that unlawfully game the system on notice, and promote markets that are fair, honest, and competitive.鈥�
Specifically, the rule bans reviews and testimonials attributed to people who don鈥檛 exist or are generated by artificial intelligence, people who don鈥檛 have experience with the business or product/services, or misrepresent their experience.
It also bans businesses from creating or selling reviews or testimonials. Businesses that knowingly buy fake reviews, procure them from company insiders or disseminate fake reviews will be penalized. It also prohibits businesses from using 鈥渦nfounded or groundless legal threats, physical threats, intimidation, or certain false public accusations.鈥�
People can report violations at .
The Associated Press
