The US Federal Trade Commission (FTC) has adopted new regulations that prohibit the buying and selling of fake reviews online. According to ReutersThe FTC's ruling authorizes the agency to impose fines on entities found to be engaging in deceptive practices involving fake reviews, opinions, or followers on various online platforms.

Under the new rules, the FTC can impose penalties of up to $51,744 per violation, targeting activities such as the creation of fake reviews by nonexistent customers, company employees or automated systems. The rule also covers the illegal trading of fake engagement metrics on social media and any attempts to coerce the removal of negative reviews.

FTC Chair Lina Khan stressed the importance of combating fraudulent reviews, noting that “fake reviews not only waste people’s time and money, but also distort competition in the marketplace.” The initiative has received support from a number of trade groups and companies, including prominent entities such as Google, Amazon, and Yelp, which provided input during the rulemaking process.

Yelp, the consumer review platform, has expressed its approval of the FTC’s action, highlighting its longstanding policies against the now-officially banned practices. According to Yelp’s general counsel, Aaron Shore, “This new rule will increase the reliability of reviews for consumers and promote fair competition among businesses.”

Consumer advocate Teresa Murray of the American Public Interest Research Group hailed the FTC’s decision as a vital safeguard for online consumers, who rely heavily on reviews to make informed purchasing decisions. “We hope this will put pressure on companies to act responsibly, even if it’s simply out of fear of repercussions,” Murray said.

The FTC has made clear that the new regulations do not impose verification requirements on platforms that publish consumer reviews, but are intended to deter and punish those who manipulate those reviews for dishonest gain.

The implementation of these measures represents an important step towards ensuring transparency and neutrality in digital commerce, reflecting efforts to maintain consumer confidence in online information sources.