The US Federal Trade Commission (FTC) has finalized a significant ban on the buying and selling of fake online reviews. This move highlights an ongoing effort to ensure transparency and honesty in online consumer feedback. According to FTC chair Lina Khan, fake reviews undermine the marketplace, wasting consumers’ time and money while harming businesses that operate honestly.

The new rule imposes hefty fines reaching up to $51,744 per violation for companies that engage in the trafficking of fake reviews. This includes reviews posted by fictitious consumers, company employees, or even generated by artificial intelligence. Additionally, it restricts businesses from using intimidation tactics to remove unfavorable reviews from platforms.

Consumer advocates argue that this regulation is crucial, particularly as a significant percentage of consumers—about 90%—rely on online reviews to influence their purchasing decisions. The FTC’s action aims to deter companies from resorting to dishonest practices, fostering a more trustworthy digital marketplace.

While platforms that merely host reviews are not mandated to verify their authenticity, the onus lies on businesses to uphold integrity in their promotional strategies. This regulation may serve as a wake-up call, encouraging companies to prioritize genuine customer feedback over deceptive practices. As the digital landscape evolves, fostering trust should remain a priority for brands aiming for long-term success.