The U.S. Federal Trade Commission today announced a final rule that will combat fake reviews and testimonials by prohibiting their sale or purchase and allow the agency to seek civil penalties against knowing violators.
"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 M. 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.”
I’m surprised that Lina Khan hasn’t been Boeing’d by some large corporation yet. She’s been the best FTC chair in decades (low bar, but she cleared it well), and I think this is a good starting point for getting anti-AI content discussions into the public space in a strategic way.
Reid Hoffman & Co have been heavily lobbying against Linda Khan, recently also with donations to Kamala Harris’ campaign. I also hope Ms. Khan keeps her job after Ms. Harris became president …
100% chance companies will use this against YOU when you make a review that they don’t like. Be prepared for civil lawsuits for claiming a companies product is shit
would they not have to have evidence that a review is fake? especially if you bought a product (e. g on amazon) its very easy to verify you have likely bought a product and have it in question to review.
The agency (FTC) can seek civil penalties, I do not see anywhere that companies could bring a lawsuit that they couldn’t before (libel?).
Will this stand up to the death of Chevron deference? Or are we 3 weeks away from a judge throwing the rule out unless congress passes a specific law.
Will this stand up to the death of Chevron deference? Or are we 3 weeks away from a judge throwing the rule out unless congress passes a specific law.
I think this is squarely in the charter of the FTC but who knows with the courts any longer. We just saw them strike down a ruling by the EPA to enact health measures under the requirements of the Civil Rights Act.
