The U.S. Federal Trade Commission has issued new rules cracking down on businesses that post or buy fake reviews, with fines of over $50,000 per violation possible. Enforcement could begin in about two months.
The regulations are aimed at a wide range of businesses including restaurants, online review sites, travel agencies, hotels and short-term rental providers, and social media influencers.
Included are prohibitions against the creation, purchase, or sale of fake reviews, including those generated by AI or individuals without genuine experience. Travel agencies, travel booking platforms, travel price-comparison services, and blogs that don’t make reasonable efforts to police fakes would also be held accountable.
“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 Khan in a statement.
