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FTC Cracks Down on AI-Generated Fake Reviews – AI: The Washington Report
On August 14, the FTC announced its much-anticipated final rule banning fake reviews and testimonials. - The final rule prohibits the purchase, sale, and dissemination of fake reviews, incentivized reviews, and certain insider reviews.
In January 2022, most notably, the FTC entered into a settlement agreement with Fashion Nova for suppressing negative reviews, among other related enforcement activities. A company is also prohibited from misrepresenting that a website it owns or controls “provides independent reviews or opinions” about its business or the products or services it sells. Lastly, the rule prohibits anyone from selling or distributing, and purchasing or procuring, “fake indicators of social media influence,” such as content engagement or followers.
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